Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 14 paragraph 3

Relief for property traders acquiring old dwellings from individuals buying new-build homes

Schedule 14, paragraph 3 sets out the conditions under which a property trader can claim land transaction tax relief when it purchases an individual's existing home as part of a chain where that individual is buying a new dwelling from a housebuilder.

• A property trader can claim full LTT relief when acquiring an individual's old dwelling, provided the trader operates a business of buying homes from people who are purchasing new-build properties from housebuilders, and several other conditions are satisfied.
• The individual must have lived in the old dwelling as their only or main residence at some point in the two years before the property trader's purchase, and must intend to occupy the new dwelling as their only or main residence.
• The property trader must not intend to spend more than the permitted amount on refurbishing the old dwelling, must not grant a lease or licence (except a short-term one of up to six months to the seller), and must not allow its principals, employees, or connected persons to occupy the property.
• If all other conditions are met but the land area exceeds the permitted area, partial relief applies — the chargeable consideration is reduced to the difference between the market value of the whole property and the market value attributable to the permitted area alone.

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