Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 9 paragraph 3

Qualifying conditions for sale and leaseback relief

Schedule 9, paragraph 3 sets out the four conditions that must be met for a sale and leaseback arrangement to qualify for relief from Land Transaction Tax.

• The sale must be entered into wholly or partly because the leaseback is also being entered into, and any additional consideration must be limited to money or the assumption, satisfaction or release of a debt.
• The sale must not be a transfer of rights to a third party under section 12 or a pre-completion transaction under Schedule 2.
• Where both parties are corporate bodies at the effective date of the leaseback, they must not be members of the same corporate group for group relief purposes.
• A debt, for these purposes, includes any obligation to pay money, whether the amount is certain or contingent and whether payable immediately or in the future.