Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 2 paragraph 7

Assignment of rights: tax treatment of the transferee

Schedule 2 paragraph 7 sets out how land transaction tax applies when a pre-completion transaction takes the form of an assignment of rights, covering who is treated as the buyer, how the chargeable consideration is calculated, and when the original contract is regarded as substantially performed by the transferee.

• When rights under a land contract are assigned and the property is then transferred to the assignee (the transferee), that transfer is treated as completion of the original contract, and the transferee is treated as the buyer for LTT purposes.
• The chargeable consideration includes everything the transferee (or a connected person) pays both for the property itself under the original contract and for the assignment of the rights — but no amount may be counted twice.
• If there is a relevant connection between the parties (triggering the minimum consideration rule), the chargeable consideration is determined by looking only at what the buyer personally paid or provided, disregarding amounts paid by connected persons.
• The original contract is treated as substantially performed by the transferee where the transferee (or a connected person) takes possession of substantially all of the property, or pays a substantial amount of the consideration — with "substantial" interpreted in line with the Act's general rules on substantial performance.