Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 7 paragraph 30

Assignment of agreement for lease: corporate partnerships

Schedule 7 paragraph 30 modifies the rules for assignments of agreements for lease where the partnership consists entirely of corporate bodies and the sum of the lower proportions is 75 or more.

• This provision applies where a partnership assigns an agreement for lease, all partners are bodies corporate immediately before the transaction, and the sum of the lower proportions is 75 or more.
• When these conditions are met, the chargeable consideration is taken to be the market value of the interest transferred, replacing the normal rules for calculating consideration on such assignments.
• The usual reliefs and adjustments that would otherwise apply to the net present value calculation for such lease assignments are disapplied.
• Only a limited part of the net present value provisions continues to apply, with most of the adjustment and relief sub-paragraphs being stripped out.