Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section 37

Exchanges involving property-investment partnerships

Schedule 7 paragraph 37 deals with how exchanges involving interests in property-investment partnerships are treated for Land Transaction Tax purposes, specifically ensuring that partnership interests are treated as major interests in land and that certain reliefs for partitions do not apply.

• When someone acquires an interest in a property-investment partnership as part of an exchange with an existing partner, that partnership interest is treated as a major interest in land for the purpose of calculating chargeable consideration.
• This treatment applies only where the relevant partnership property itself includes a major interest in land (such as a freehold or long lease).
• The meaning of "relevant partnership property" follows the definitions used elsewhere in the partnership rules, taking into account the exclusion of market rent leases.
• Where this paragraph applies, the normal relief that allows an existing interest to be disregarded in partition transactions does not apply — meaning the full chargeable consideration rules for exchanges apply instead.