Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 6 paragraph 33

Tax chargeable in respect of consideration other than rent

Schedule 6 paragraph 33 explains how Land Transaction Tax applies when a lease involves payments other than rent, and confirms that tax on rent and tax on other consideration are calculated separately.

• When a lease includes consideration other than rent (such as a premium), the normal LTT rules for chargeable consideration apply to that non-rent element.
• Special rules in paragraphs 34 and 35 of Schedule 6 may modify how tax is calculated on non-rent consideration for certain non-residential and mixed-use leases.
• Any LTT charged on the rent element of a lease is a separate and additional charge — it does not absorb or replace tax due on other forms of consideration.
• In practice, a lease transaction involving both rent and a premium will generate two distinct LTT calculations: one for the rent and one for the premium.