Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 5 paragraph 7

Exemption from higher rates when buying a further interest in your existing main residence

Schedule 5, paragraph 7 provides an exemption from the higher rates of land transaction tax where a buyer (or their spouse or civil partner) already holds an interest in the dwelling being purchased and it is their only or main residence.

• This exemption applies where the buyer is acquiring a major interest in a dwelling in which they (or their spouse or civil partner) already held another major interest immediately before completion.
• The dwelling must be the buyer's only or main residence both immediately before and immediately after the transaction takes effect.
• The exemption prevents the higher rates from applying in situations such as buying out a co-owner's share of a home the buyer already lives in.
• Both conditions — the pre-existing interest and the main residence requirement — must be satisfied for the exemption to apply.