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

Where the acquisition of a non-residential lease or mixed lease is one of a number of linked transactions

Section 30 sets out how to calculate the Land Transaction Tax on rent when a non-residential or mixed lease is part of a group of linked transactions that include rent as chargeable consideration.

• When linked leases involve rent, the tax on rent is calculated by reference to the total net present values (TNPV) of rent across all the linked leases combined, not just the individual lease.
• The TNPV is applied against the relevant tax bands — each portion falling within a band is multiplied by the corresponding tax rate — and the results are added together to give the total tax on rent for all the linked leases.
• The total tax is then apportioned to each individual lease by dividing that lease's own net present value (NPV) of rent by the TNPV, producing a fraction.
• That fraction is multiplied by the total tax to arrive at the amount of tax chargeable on rent for the specific lease in question.