Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 15 paragraph 6

Staircasing transactions: relief from land transaction tax

Schedule 15 paragraph 6 explains when a shared ownership tenant who buys additional shares in their dwelling (known as "staircasing") can be relieved from land transaction tax on that acquisition.

• Staircasing occurs when a shared ownership tenant pays a sum to acquire a further percentage share of their dwelling, calculated by reference to its market value, in return for a reduction in rent payable under the lease.
• A staircasing acquisition is relieved from land transaction tax if an election was previously made under paragraph 3 (market value treatment) or paragraph 5 (staircasing election) and any tax due on the original grant of the lease has been paid.
• Alternatively, relief applies if, immediately after the staircasing acquisition, the tenant's total share of the dwelling does not exceed 80%.
• The standard statutory definition of market value in section 70 of the Act does not apply to the references to market value in this paragraph; the market value of the dwelling is instead determined on a standalone basis.