Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 21A paragraph 4

Qualifying use of transaction land in special tax sites

Schedule 21A paragraph 4 defines what it means for land within a special tax site to be "used in a qualifying manner", which is a key condition for accessing the special tax site relief from land transaction tax.

• Land is used in a qualifying manner if it is used commercially by the buyer or a connected person, developed for commercial use, or exploited as a source of rental income in the course of a commercial trade or profession.
• Land does not qualify to the extent it is used as a dwelling (or its garden or grounds), developed into residential property, rented to someone not using it in a qualifying manner, or simply held as stock for resale without development.
• An exception to the dwelling exclusion applies where a dwelling is provided to a caretaker or security staff member (and their family) for the better performance of their employment duties in relation to the transaction land.
• "Commercial" means the trade or profession must be carried on with a view to profit and on a commercial basis; the definition also covers property rental businesses and ancillary uses of land connected to other commercially used land within a special tax site.