Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 5 paragraph 34

Inherited dwellings and the higher rates of land transaction tax

Schedule 5 paragraph 34 provides relief from the higher rates of land transaction tax where a person inherits a small share (50% or less) in a dwelling, so that the inherited interest is disregarded for up to three years when determining whether the buyer already owns a dwelling.

• Where a person inherits a joint interest in a dwelling that does not exceed 50%, that interest is ignored for higher rate purposes for three years from the date of inheritance.
• If the person's share later exceeds 50% or they become the sole owner within that three-year period, the interest counts as owned from that point onwards.
• The 50% threshold takes into account any share held by the person's spouse or civil partner (provided they are living together at the date of the relevant transaction).
• An inheritance includes property received under a will, on intestacy, or following a deed of variation made within two years of the deceased's death.