Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 5, paragraph 32

Partners buying dwellings outside the partnership

Schedule 5, paragraph 32 deals with how partnership property is treated when determining whether the higher rates of land transaction tax apply to a partner who buys a dwelling in a personal capacity, outside the partnership.

• This rule applies when an individual buyer is a partner in a partnership but is purchasing a dwelling personally, not for partnership purposes.
• Any dwelling held by or on behalf of the partnership for the purposes of its trade is ignored when deciding whether the buyer already owns an interest in another dwelling.
• This prevents partnership trading properties from triggering the higher rates of LTT on a partner's personal property purchase.
• The general rule that partnership property is treated as held by each partner is overridden by this provision in the context of the higher rates test.