Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 15 para 7

Shared ownership lease grants treated as unlinked transactions

Schedule 15, paragraph 7 provides that the initial grant of a shared ownership lease is not to be treated as linked to subsequent staircasing purchases or the eventual transfer of the freehold reversion to the tenant.

• When calculating the Land Transaction Tax on the grant of a shared ownership lease of a dwelling, the grant must be treated as a standalone transaction.
• The grant is not linked to any later staircasing transaction (where the tenant acquires additional shares in the property under paragraph 6 of Schedule 15).
• The grant is also not linked to any transfer of the freehold reversion to the tenant that takes place under the terms of the lease.
• This prevents the aggregation of the initial lease value with future staircasing or reversion transfers, which would otherwise push the combined consideration into higher tax bands.