Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 5 paragraph 3

Higher rates: conditions for individual buyers of a single dwelling

Schedule 5 paragraph 3 sets out the conditions under which a property purchase by an individual is treated as a higher rates residential property transaction, attracting the higher rates of Land Transaction Tax.

• The higher rates apply where an individual buys a major interest in a dwelling for £40,000 or more and already owns a major interest in another dwelling (as determined by paragraph 5 of the Schedule).
• A transaction is excluded from the higher rates where the purchased dwelling is subject to a lease that has more than 21 years left to run and the lease is held by someone who is not connected with the buyer.
• Two further exceptions may remove a transaction from higher rates treatment: where the buyer is acquiring an interest in the same property that is already their main residence, or where the buyer is replacing their main residence.
• The term "purchased dwelling" is defined as the dwelling that forms the main subject matter of the transaction and is used consistently throughout this part of the Schedule.