Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 2 paragraph 3

What counts as a pre-completion transaction

Schedule 2 paragraph 3 defines what qualifies as a pre-completion transaction for the purposes of the sub-sale and assignment rules.

• A pre-completion transaction occurs when someone other than the original buyer (the "transferee") acquires the right to call for the transfer of all or part of the property that was the subject of the original contract, where immediately before that transaction someone else already held that right under the original contract.
• A transaction that actually completes the acquisition of the property (i.e. the final conveyance or transfer itself) is not a pre-completion transaction — it is the completion, not a step before completion.
• The grant or assignment of an option over the property is specifically excluded from being a pre-completion transaction.
• A transaction can still be a pre-completion transaction even if it has the effect of discharging or cancelling the original contract entirely.