Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 15 paragraph 5

Shared ownership leases granted by qualifying bodies

Schedule 15 paragraph 5 provides a special election for calculating Land Transaction Tax on shared ownership leases granted by qualifying bodies, allowing the buyer to choose an alternative basis for determining the chargeable consideration.

• A shared ownership lease granted by a qualifying body may qualify for a special LTT treatment if the buyer elects for it and the lease meets all the required conditions.
• The lease must be of a dwelling for the tenant's exclusive use, must be granted partly for rent and partly for a premium linked to the open market value, and must allow the tenant to pay to reduce the rent over time.
• If the buyer makes the election, the chargeable consideration (other than rent) is taken to be the open market premium (or a sum calculated by reference to it) as stated in the lease, rather than the actual premium paid.
• The election must be included in the LTT return (or an amendment to it) for the grant of the lease and, once made, cannot be withdrawn.