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

Exemption from LTT for property transfers between spouses on marriage breakdown

Schedule 3, paragraph 3 exempts from land transaction tax certain transfers of property between parties to a marriage that arise from the dissolution, annulment, or judicial separation of that marriage.

• Property transfers between spouses are exempt from LTT when made under a court order granted at the time of divorce, annulment, or judicial separation.
• The exemption also applies to court orders made at any time after the granting of such a divorce, annulment, or judicial separation order.
• Specific court orders under the Matrimonial Causes Act 1973 or the Family Law (Scotland) Act 1985 relating to financial provision on divorce also qualify for the exemption.
• Transfers made under an agreement between the spouses — whether made in contemplation of, or otherwise in connection with, their divorce, annulment, judicial separation, or separation order — are likewise exempt.