Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 5 paragraph 20

Higher rates for non-individual buyers

Schedule 5 paragraph 20 sets out when a property purchase by a non-individual buyer (such as a company, trust, or partnership) is treated as a higher rates residential property transaction, and describes the exception where the property is subject to a long lease held by an unconnected party.

• When a buyer is not an individual (e.g. a company or trust) and purchases a major interest in a dwelling for £40,000 or more, the transaction attracts the higher rates of land transaction tax.
• Unlike the rules for individual buyers, there is no need to consider whether the buyer already owns other property — the higher rates apply automatically to non-individual buyers.
• An exception applies where the dwelling is subject to a lease that has more than 21 years left to run and is not held by a person connected with the buyer.
• Where this exception applies, the purchase of the freehold reversion does not attract the higher rates, because the buyer is essentially acquiring an investment interest rather than a usable dwelling.