Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 5 paragraph 26

Disregard of interests held as tenant in common following divorce or dissolution

Schedule 5, paragraph 26 provides that certain property interests arising from divorce or civil partnership dissolution orders are disregarded when determining whether a buyer owns another dwelling for the purposes of the higher rates of land transaction tax.

• When assessing whether the higher rates of LTT apply, a buyer's interest in a dwelling held as a tenant in common following a court order made on divorce or dissolution is disregarded.
• The relevant court orders include property adjustment orders under the Matrimonial Causes Act 1973, the Matrimonial and Family Proceedings Act 1984, and the Civil Partnership Act 2004.
• Orders following overseas divorces and overseas dissolutions of civil partnerships are also covered.
• The disregard only applies where the dwelling in question is the only or main residence of the person for whose benefit the court order was made.