Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 6 paragraph 34

Non-residential leases: effect of rent level on the zero rate band for non-rent consideration

Schedule 6 paragraph 34 explains how the zero rate band for non-rent consideration (such as a premium) is removed when the rent payable under a non-residential lease meets or exceeds a specified threshold.

• This rule applies to non-residential leases where there is chargeable consideration other than rent, such as a premium or other payment.
• The transaction must be one where the standard tax calculation rules under section 27 (unlinked transactions) or section 28 (linked transactions) apply.
• If the relevant rent equals or exceeds the specified amount, the zero rate band is removed for the purposes of calculating tax on the non-rent consideration.
• Any amount of non-rent consideration that would otherwise have fallen within the zero rate band is instead taxed at the rate applicable to the next tax band above it.