Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 5 paragraph 33

Alternative finance arrangements and the higher rates rules

Schedule 5 paragraph 33 deals with how the higher rates of land transaction tax apply when property is acquired through an alternative (e.g. Sharia-compliant) finance arrangement involving a financial institution.

• Where property is purchased through an alternative finance arrangement, the individual (not the financial institution) is treated as the buyer for the purposes of the higher rates rules in Schedule 5.
• Alternative finance arrangements are those where land is sold to a financial institution and then either leased back to, or re-sold to, the person — as defined in Schedule 10 of the Act.
• The "first transaction" is the initial sale of the property to the financial institution as part of the arrangement.
• A "financial institution" is defined by reference to Schedule 10 paragraph 8 of the Act, covering banks, building societies and other authorised financial bodies.