Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 7, paragraph 35

Exclusion of certain leases from relevant partnership property

Schedule 7, paragraph 35 sets out the conditions under which a lease held as partnership property is excluded from being treated as "relevant partnership property" when an interest in a property investment partnership is transferred — thereby potentially reducing the land transaction tax charge on that transfer.

• A lease held as partnership property after a transfer of a partnership interest can be excluded from the tax charge if four conditions are all met.
• The lease must have been granted for rent only at market rate, with no premium or other non-rent consideration paid or arranged.
• If the lease term exceeds five years, it must include rent reviews at least every five years, with rent reset to market rent at each review.
• There must have been no post-grant changes to the lease that result in the rent falling below market rent.