Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 16 paragraph 4

Restrictions on availability of group relief

Schedule 16 paragraph 4 sets out the circumstances in which group relief from land transaction tax is restricted or denied because of arrangements that exist in connection with the transaction.

• Group relief is denied where arrangements exist under which a person or persons could obtain control of the buyer but not the seller, thereby breaking the group relationship.
• Group relief is also denied where the consideration for the transaction is provided or received by a person outside the group, or where the buyer and seller are to cease being in the same group.
• An exception applies where the arrangements relate to a share acquisition that qualifies for stamp duty acquisition relief under section 75 of the Finance Act 1986, provided the buyer will remain in the same group as the acquiring company.
• Separate exceptions exist for certain joint venture company arrangements and certain mortgage arrangements, which are dealt with in paragraphs 5 and 6 of Schedule 16.