Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 4 paragraph 4

Apportionment of consideration

Schedule 4, paragraph 4 sets out the rules for apportioning consideration on a just and reasonable basis where it relates to more than one land transaction or to a mixture of chargeable and non-chargeable matters.

• Where consideration relates to two or more land transactions, or partly to a land transaction and partly to something else, it must be apportioned on a just and reasonable basis.
• If the parties fail to apportion the consideration themselves, the legislation treats it as though a just and reasonable apportionment has been made automatically.
• Where a single bargain exists in substance, all consideration given must be treated as attributable to every element of that bargain, regardless of how the parties have structured or labelled the payments.
• Artificial separation of consideration — whether by assigning separate prices to different elements or by creating separate transactions for different parts of the same deal — does not override the requirement to treat the bargain as a whole.