Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 Schedule 13 paragraph 6

Calculating the tax related to the consideration attributable to dwellings

Schedule 13 paragraph 6 sets out the method for calculating the portion of land transaction tax that relates to the dwelling element of a multiple dwellings relief claim, including a minimum tax floor and rules for linked transactions.

• The tax on dwellings is calculated by working out the tax on the average price per dwelling (total dwellings consideration divided by the number of dwellings), then multiplying that figure by the total number of dwellings.
• A minimum tax floor applies: if the amount calculated is less than 1% of the total dwellings consideration, the tax is instead set at 1% of the consideration attributable to dwellings.
• Where the transaction is one of a number of linked transactions, the result is apportioned by multiplying it by the fraction of the individual transaction's dwelling consideration over the total dwellings consideration across all linked transactions.
• If the transaction qualifies as a higher rates residential property transaction (under Schedule 5), the higher rates bands are used when calculating the tax, and the Welsh Ministers may amend the 1% minimum threshold by regulations.