Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section 50

Valuing leases in partnership transfers

Schedule 7, paragraph 50 sets out how the market value of a lease should be determined when the lease is granted as part of a transfer of a chargeable interest into or out of a partnership.

• This rule applies to leases granted as part of a transfer of a chargeable interest to a partnership (under paragraph 13) or from a partnership (under paragraph 21).
• It also applies where the lease was granted before these rules came into force, provided the transfer would have fallen within paragraph 13 had it been in force at the time.
• When determining the market value of such a lease, the tenant's obligations under the lease are generally ignored unless they fall into one of two specific categories.
• The only tenant obligations that may be taken into account are those that are standard tenant obligations not counting as chargeable consideration (such as repair and maintenance obligations) or obligations requiring the tenant to make a payment to a person.