Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 17 paragraph 6

Exceptions to withdrawal of reconstruction or acquisition relief

Schedule 17, paragraph 6 sets out five specific circumstances in which reconstruction or acquisition relief, once granted on a land transaction, will not be withdrawn even though control of the acquiring company changes hands within the relevant period.

• Relief is protected where control changes as a result of share transactions connected with divorce, dissolution of civil partnership, or variation of a will (provided the relevant conditions are met).
• Relief is protected where control changes through an exempt intra-group share transfer — meaning one that is exempt from stamp duty as a transfer between associated bodies corporate — though this protection can itself be lost if a subsequent non-exempt transfer occurs.
• Relief is protected where control changes through a share transfer that qualifies for share acquisition relief under section 77 of the Finance Act 1986 — again subject to possible later withdrawal if a subsequent non-exempt transfer takes place.
• Relief is protected where the change of control arises solely because a loan creditor begins or ceases to be treated as controlling the company, provided the other persons who previously controlled it continue to do so.

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