Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 5, paragraph 21

Purchases of multiple dwellings by non-individual buyers

Schedule 5, paragraph 21 sets out the conditions under which a purchase of two or more dwellings by a non-individual buyer (such as a company, trust or partnership) is treated as a higher rates residential property transaction for Land Transaction Tax purposes.

• Where the buyer is not an individual (e.g. a company) and is purchasing a major interest in two or more dwellings, the higher rates apply if at least one dwelling has consideration of £40,000 or more attributable to it.
• A dwelling is excluded from triggering the higher rates if it is subject to an existing lease with more than 21 years remaining, provided the lease is not held by a person connected with the buyer and the purchase is of the reversion on that lease.
• A transaction that falls within the mixed-use property rules under section 72(9) is generally not treated as a higher rates transaction, unless multiple dwellings relief under Schedule 13 applies.
• The consideration attributable to each dwelling must be apportioned on a just and reasonable basis to determine whether the £40,000 threshold is met.