Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 15 paragraph 4

The transfer of the reversion to the tenant under the terms of a shared ownership lease

Schedule 15 paragraph 4 provides a tax relief when the freehold reversion is transferred to the tenant under a shared ownership lease where the market value election has been made.

• This paragraph applies to shared ownership leases where the tenant acquires the landlord's remaining interest (the reversion) under the terms of the lease.
• The transfer of the reversion is fully relieved from land transaction tax, meaning no additional tax is payable on that transaction.
• The relief only applies if the tenant previously made an election under paragraph 3 to have the lease treated as based on market value (the market value treatment).
• All tax that was chargeable on the original grant of the lease must have been paid before the relief can apply.