Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 5 paragraph 35

Dwellings outside Wales and how they are treated for higher rates purposes

Schedule 5 paragraph 35 explains how dwellings located outside Wales are taken into account when determining whether the higher rates of Land Transaction Tax apply, and how foreign property concepts are translated into Welsh LTT equivalents.

• Dwellings anywhere in the world, not just in Wales, count when assessing whether the higher rates of LTT apply to a residential property transaction.
• For dwellings in England, the relevant provisions are interpreted using the Finance Act 2003 (the SDLT legislation); for dwellings outside England and Wales, key legal concepts such as property interests, joint ownership, transactions, effective dates, inheritance, and emergency restrictions are translated into their local legal equivalents.
• Where a child owns an interest in a dwelling outside Wales, the parent (and the parent's spouse or civil partner, if they are living together) is treated as holding that interest instead of the child — meaning it counts towards the parent's dwelling ownership for higher rates purposes.
• The child-ownership attribution rule does not apply where a court-appointed deputy (or equivalent under foreign law) holds the property on trust for the child.