Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section 81

Contract settlements

Schedule 23, paragraph 34 amends section 81 of the Tax Collection and Management (Wales) Act 2016 to ensure that the rules on contract settlements work correctly alongside the new provisions for repayment of overpaid land transaction tax.

• A contract settlement is an agreement between a taxpayer and WRA to resolve a tax dispute by the taxpayer paying an agreed amount.
• Where a taxpayer has paid an amount under a contract settlement relating to land transaction tax, they can claim repayment of that amount under the new overpayment relief provisions.
• The reference to repayment of land transaction tax in the new overpayment relief section is extended to cover amounts paid under contract settlements connected with that tax.
• The existing rules preventing double recovery through both contract settlement provisions and other relief mechanisms are extended to cover the new overpayment relief as well.