Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 5 paragraph 24

Reporting requirements when higher rates apply after the interim period expires

Schedule 5 paragraph 24 sets out the return and self-assessment obligations that arise when a property transaction becomes subject to the higher rates of land transaction tax because the buyer failed to sell their previous main residence within the permitted interim period.

• Where a buyer was given temporary relief from higher rates while waiting to sell a previous main residence, and the interim period expires without that sale completing, the transaction is reclassified as a higher rates residential property transaction.
• The higher rates treatment takes effect from the end of the interim period — that is, the point at which the allowed time to dispose of the former main residence ran out.
• The buyer must file a new return with the Welsh Revenue Authority (WRA) in respect of the transaction that has now become subject to the higher rates.
• The return must be submitted within 30 days of the end of the interim period and must include a self-assessment calculating the additional tax due.