Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 14 paragraph 7

Employer acquisition of employee's dwelling on relocation

Schedule 14 paragraph 7 provides relief from land transaction tax where an employer purchases an employee's home in connection with an employment relocation.

• Full tax relief is available when an employer (or prospective employer) buys a dwelling from an employee who is relocating for work, provided certain conditions are met.
• The employee must have lived in the dwelling as their only or main residence at some point within the two years before the employer's purchase, the purchase must be connected to a work relocation, and the price must not exceed market value.
• The land acquired must not exceed the permitted area; if it does, only partial relief applies — tax is charged on the difference between the market value of the whole dwelling and the market value of the permitted area alone.
• References to the dwelling mean the major interest (freehold or leasehold) being transferred, and "employer" includes a prospective employer.