Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 17 paragraph 7

Reconstruction or acquisition relief in relation to a relieved transaction

Schedule 17 paragraph 7 deals with situations where reconstruction or acquisition relief, which was initially preserved under certain exceptions, is subsequently clawed back because of further changes in company ownership within three years.

• Where relief was preserved because a change of control arose from an exempt intra-group share transfer, the relief is withdrawn if the company holding those shares later leaves the same group as the target company within three years, and the original land interest is still held.
• Where relief was preserved because a change of control arose from a transfer qualifying for share acquisition relief, the relief is withdrawn if control of the company receiving those shares changes within three years, and the original land interest is still held.
• The tax clawed back is calculated as if the original relieved transaction had been carried out at market value, or a proportionate amount if only part of the original land interest is still held at the relevant time.
• A "relevant associated company" is one controlled by the acquiring company immediately before the change of control and which itself changes control as a consequence — interests held by such companies are also taken into account when determining the amount of relief withdrawn.