Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 6 paragraph 29

Non-residential or mixed lease: tax on the rent element

Schedule 6 paragraph 29 sets out how to calculate the land transaction tax due on the rent element of a non-residential or mixed lease.

• This paragraph applies to the rent element of non-residential leases and mixed leases (those covering both residential and non-residential property).
• The first step is to work out the net present value (NPV) of the total rent payable over the full term of the lease.
• The NPV is then split across the applicable tax bands, and the portion falling within each band is multiplied by the corresponding tax rate.
• The amounts calculated for each band are added together to give the total tax chargeable on the rent element of the lease.