Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 11 paragraph 6

Condition 1: transfer and return arrangements

Schedule 11 paragraph 6 sets out the first condition that must be met for certain land transaction arrangements to qualify for special treatment, requiring that one party transfers a qualifying interest in land to another with an agreement that the interest will be transferred back.

• Two parties (A and B) must enter into arrangements involving a qualifying interest in land.
• Under those arrangements, A transfers the qualifying interest in land to B — this is known as "the first transaction."
• A and B must also agree that when B ceases to hold the interest in the circumstances described in paragraph 7(b) of Schedule 11, B will transfer the interest back to A.
• Both elements — the initial transfer and the agreement to return the interest — must be part of the same set of arrangements between A and B.