Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 5 paragraph 8

Replacement of only or main residence exception from higher rates

Schedule 5 paragraph 8 provides an exception from the higher rates of land transaction tax where a buyer is replacing their only or main residence, and sets out the conditions that must be met both where the old home was sold before and after the new purchase.

• A purchase is not subject to higher rates if the buyer is replacing their only or main residence, provided they sold their previous main home within the 3-year period before the purchase and intend the new dwelling to be their main home.
• Where the old home has not yet been sold at the date of purchase, higher rates are initially payable but may be refunded if the old home is sold within 3 years after the purchase, provided it was the buyer's main residence at some point during the 3 years before the purchase.
• The standard 3-year time limits for selling before or after the purchase can be extended where a "relevant restriction" (such as an external event) substantially hindered the buyer's ability to buy or sell, provided the transaction takes place on or after 12 July 2024 and as soon as reasonably practicable.
• An additional extension applies where the old home had a hidden fire safety defect for which a landlord, commonhold association, or developer was responsible for remedying, and which substantially reduced interest in or the market value of the property.