Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 6 paragraph 21

Assignment of agreement for lease

Schedule 6 paragraph 21 deals with what happens for land transaction tax purposes when a person assigns their interest as tenant under an agreement for lease to someone else.

• When a tenant assigns their interest under an agreement for lease, the normal rules about transactions before completion of a contract (Schedule 2) do not apply.
• If the agreement has not yet been substantially performed at the time of the assignment, the agreement is treated as if it had always been with the assignee, and the consideration includes any amount the assignee paid for the assignment itself.
• If the agreement has already been substantially performed before the assignment takes place, the assignment is treated as a separate land transaction in its own right, with its effective date being the date of the assignment.
• Where there are multiple successive assignments of the same agreement for lease, these rules apply separately to each assignment in turn.