Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 13 paragraph 7A

Treating a qualifying dwelling and its subsidiary dwellings as a single dwelling for multiple dwellings relief

Schedule 13, paragraph 7A provides that where an individual buys two or more dwellings and only one is a qualifying dwelling (broadly, a main residence), the qualifying dwelling and any subsidiary dwellings may be treated as a single dwelling for the purposes of multiple dwellings relief.

• Where an individual purchases a major interest in two or more dwellings and only one is a qualifying dwelling (i.e. a main residence for higher rates purposes), special treatment applies for multiple dwellings relief calculations.
• The qualifying dwelling and any purchased dwelling that is subsidiary to it are treated as though they were a single dwelling, reducing the number of dwellings counted for multiple dwellings relief.
• A purchased dwelling is subsidiary to the qualifying dwelling if it would be treated as subsidiary under the higher rates rules in Schedule 5, paragraph 14 — for example, an annexe or ancillary building within the grounds of the main residence.
• This treatment does not apply where the transaction is an intermediate (replacement main residence) transaction subject to the higher rates under Schedule 5, paragraph 18.