Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 17 paragraph 8

Recovery of unpaid tax from related parties

Schedule 17 paragraph 8 allows the Welsh Revenue Authority to recover unpaid land transaction tax from parent companies or controlling directors when reconstruction or acquisition relief has been withdrawn and the acquiring company has not paid the tax due.

• Where reconstruction or acquisition relief is withdrawn and the resulting tax remains unpaid six months after it became payable, the WRA can pursue other parties for the debt.
• Parent companies that were above the acquiring company in the group structure at any time between the original relieved transaction and the change of control can be required to pay the outstanding tax and any interest.
• Controlling directors of the acquiring company, or of a company that controlled it, during the same period can also be held personally liable for the unpaid tax.
• The tax amount must be finally determined — meaning it can no longer be varied by review, appeal or otherwise — before recovery action can be taken against these related parties.