Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 14 paragraph 4

Relief for property traders acquiring old dwellings in chain-break situations

Schedule 14 paragraph 4 sets out the conditions under which a property trader can claim land transaction tax relief when it purchases an individual's existing home to enable that individual's onward purchase to proceed after a sale has fallen through.

• A property trader may claim full LTT relief when acquiring an individual's old dwelling where the individual's sale has fallen through, provided the purchase is made to enable the individual to proceed with buying a second dwelling.
• The individual must have lived in the old dwelling as their only or main residence within the two years before the property trader's acquisition, and must intend to occupy the second dwelling as their main residence.
• The property trader must not intend to spend more than the permitted amount on refurbishment, must not grant a lease or licence (except a short-term lease of up to six months back to the individual), and must not allow its principals, employees, or connected persons to occupy the property.
• If the land area exceeds the permitted area, partial relief applies: the chargeable consideration is reduced to the difference between the market value of the entire old dwelling and the market value of the permitted area alone.

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