Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 5 paragraph 4

Intermediate transactions treated as higher rates transactions

Schedule 5 paragraph 4 provides that certain intermediate transactions are subject to the higher rates of land transaction tax when the replacement of a main residence rules apply.

• This provision applies where the main residence replacement rules under paragraph 9 of Schedule 5 are in effect.
• An intermediate transaction is one that takes place during the period between buying a new main residence and selling the old one.
• Any such intermediate transaction is automatically treated as a higher rates residential property transaction for land transaction tax purposes.
• This means the higher rates of tax apply to the intermediate purchase, although a refund may be available once the previous main residence is sold.