Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 18 paragraph 4

Withdrawal of charities relief

Schedule 18 paragraph 4 sets out the circumstances in which charities relief from land transaction tax can be withdrawn, and how the tax charge is calculated when relief is clawed back.

• If a charity that claimed relief under paragraph 3 experiences a "disqualifying event" within three years of the transaction (or pursuant to arrangements made within that period), the relief may be withdrawn in whole or in part.
• At the time of the disqualifying event, the charity must still hold a chargeable interest acquired under the relieved transaction, or an interest derived from it, for the clawback to apply.
• The tax clawed back is the amount that would originally have been payable without the relief, or an appropriate proportion of that amount.
• The "appropriate proportion" is determined by comparing what the charity originally acquired with what it still holds at the time of the disqualifying event, and the extent to which the property is used for non-charitable purposes.