Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section 23

Assignment of leases: transfer of obligations to the assignee

Schedule 6, paragraph 23 deals with the transfer of Land Transaction Tax reporting and adjustment obligations from the original tenant (assignor) to the new tenant (assignee) when a lease is assigned.

• When a lease is assigned, any outstanding LTT reporting or adjustment obligations that would have fallen on the original tenant transfer to the new tenant, provided the triggering event occurs after the effective date of the assignment.
• The obligations that transfer cover a range of scenarios: where contingent or uncertain consideration is finalised, where a later linked transaction requires a further return, where a fixed-term or indefinite-term lease continues beyond its assumed duration, and where previously uncertain rent is determined on a reconsideration date.
• To make the transfer of obligations work in practice, anything previously done by or in relation to the original tenant is treated as if it had been done by or in relation to the new tenant.
• This transfer of obligations does not apply where the assignment is itself treated as the grant of a new lease by the assignor under paragraph 22 of Schedule 6.