Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 6 paragraph 22

Assignment of lease originally granted with tax relief

Schedule 6 paragraph 22 deals with what happens when a lease that was originally granted free of land transaction tax (because it qualified for a relief) is subsequently assigned to someone who does not benefit from the same relief.

• Where a lease was granted with the benefit of certain specified LTT reliefs, the first assignment of that lease to a person who does not qualify for those reliefs is treated as if it were an entirely new grant of a lease, making it potentially chargeable to LTT.
• The deemed new lease is treated as being for a term equal to the unexpired portion of the original lease remaining at the date of assignment, and on the same terms as the assignee holds the lease after the assignment.
• The specified reliefs that trigger this rule include sale and leaseback relief, alternative finance investment bond relief, group relief, reconstruction and acquisition relief, charities relief, public bodies relief, and special tax sites relief.
• This rule does not apply if the relevant relief (group, reconstruction/acquisition, charities, or special tax sites) was already withdrawn due to a disqualifying event that occurred before the date of the assignment.