Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 7 paragraph 34

Transfers of interests in property-investment partnerships

Schedule 7, paragraph 34 sets out how land transaction tax applies when someone acquires or increases an interest in a property-investment partnership that holds chargeable interests in land.

• A transfer of an interest in a property-investment partnership that holds chargeable interests in land is treated as a chargeable land transaction for LTT purposes.
• The chargeable consideration is based on a proportion of the market value of the relevant partnership property, calculated by reference to the buyer's new or increased partnership share.
• Transfers are classified as either Type A (involving direct consideration or withdrawal of value by an outgoing partner) or Type B (all other transfers), with Type B transfers benefiting from a wider range of exclusions from the relevant partnership property.
• Certain chargeable interests are excluded from the calculation, including market rent leases, interests transferred to the partnership in connection with the transfer, and — for Type B transfers only — interests transferred before 23 July 2004 or where a special election has been made.