Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 Schedule 5 paragraph 36

Definition of a dwelling for higher rates purposes

Schedule 5 paragraph 36 sets out the rules for determining what counts as a dwelling for the purposes of the higher residential rates of land transaction tax.

• A building or part of a building is a dwelling if it is used or suitable for use as a dwelling, or is being constructed or adapted for that purpose.
• Gardens, grounds and any land enjoyed with or benefiting a dwelling — including structures on that land — are treated as part of the dwelling.
• An off-plan or pre-construction purchase can also be treated as a dwelling transaction where the contract is substantially performed before building work has even started.
• Certain institutional uses listed in the Act — such as residential care homes, hospitals and prisons — are specifically excluded from counting as dwellings, and their suitability for alternative use is disregarded.