Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 14 paragraph 6

Relief for property traders acquiring dwellings in connection with employment relocation

Schedule 14 paragraph 6 sets out the conditions under which a property trader can claim relief from land transaction tax when it purchases a dwelling from an individual who is relocating for employment purposes.

• A property trader buying a dwelling from an individual can claim full tax relief if the purchase is made as part of a business that acquires homes from people relocating for work, the seller lived in the property as their main residence within the last two years, the price paid does not exceed market value, and the trader does not intend to spend more than the permitted amount on refurbishment, grant a lease or licence, or allow its principals, employees, or connected persons to occupy the dwelling.
• A short-term lease or licence of up to six months granted back to the selling individual is permitted without losing the relief.
• If all conditions are met except that the land area exceeds the permitted area, partial relief applies: the chargeable consideration is reduced to the difference between the market value of the whole dwelling and the market value of the permitted area.
• References to acquiring the dwelling mean acquiring a major interest (freehold or lease) by way of transfer, and market value references relate to that major interest or the relevant portion of it.