Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 8 paragraph 3

Bare trustees: general treatment and the lease exception

Schedule 8, paragraph 3 explains how land transaction tax applies when a bare trustee acquires or disposes of a chargeable interest, including the special rules that apply where the transaction involves the grant of a lease.

• When a bare trustee acquires a chargeable interest or partnership interest, the tax rules treat the property and the trustee's actions as belonging to the beneficiary, not the trustee.
• This "look-through" treatment does not apply to the grant of a lease, which is subject to separate rules.
• Where a lease is granted to a bare trustee, the trustee is treated as the buyer of the entire interest acquired for land transaction tax purposes.
• Where a lease is granted by a bare trustee, the trustee is treated as the seller of the entire interest disposed of for land transaction tax purposes.