Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section 63A

Claim for relief in respect of land transaction tax: regulations ceasing to have effect

Section 63A provides a mechanism for buyers to claim back overpaid land transaction tax where the tax rates used to calculate their liability were set by regulations that subsequently failed to gain approval and ceased to have effect.

• Where regulations setting land transaction tax bands and rates are rejected (i.e. they cease to have effect), a buyer who was charged more tax than would otherwise have applied may claim a refund or discharge of the excess from WRA.
• If WRA grants the claim, it must also discharge or repay any related penalties and interest — that is, penalties or interest that arose solely because the rejected regulations applied to the transaction.
• The claim must be made within 12 months of whichever is later: the date the rejected regulations cease to have effect, or the filing date for the tax return in which the tax was assessed using those regulations.
• The claim is treated as if it were an amendment to the tax return assessment, following the same procedural rules that apply to taxpayer amendments under section 41 of the Tax Collection and Management (Wales) Act 2016.