Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 4 paragraph 6

Partition or division of jointly held interests

Schedule 4 paragraph 6 provides that when jointly held land is divided up among the owners, a buyer's own pre-existing share is excluded from the chargeable consideration for land transaction tax purposes.

• This provision applies where a land transaction gives effect to a partition or division of a chargeable interest held jointly by two or more persons.
• The share of the interest that the buyer already held immediately before the partition or division is not treated as chargeable consideration.
• This means that land transaction tax is only calculated on the value of any additional interest the buyer acquires beyond what they already owned, preventing double taxation on their existing share.
• The rule recognises that converting a joint interest into a sole or separate interest, to the extent of one's existing share, does not represent a genuine acquisition of new value.