Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 15 paragraph 3

Shared ownership leases — election to charge tax on market value

Schedule 15 paragraph 3 allows the buyer of a shared ownership lease granted by a qualifying body to elect for land transaction tax to be calculated on the stated market value (or a sum derived from it) rather than on the rent and premium separately.

• The lease must be of a dwelling giving the tenant exclusive use, must provide for the tenant to acquire the reversion, and must be granted partly for rent and partly for a premium linked to the dwelling's market value.
• The lease must contain a statement of the market value of the dwelling (or a sum calculated by reference to that value) used to work out the premium.
• Where the buyer elects for this treatment, the chargeable consideration is the market value figure stated in the lease, and the rent element is disregarded for land transaction tax purposes.
• The election must be included in the land transaction tax return (or an amendment to it) and, once made, cannot be withdrawn.