Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 4 paragraph 8

Debt as chargeable consideration

Schedule 4 paragraph 8 explains how debt — whether satisfied, released or assumed by the buyer — is treated as chargeable consideration for Land Transaction Tax purposes.

• Where a land transaction involves the satisfaction, release or assumption of debt, the amount of that debt counts as chargeable consideration for the transaction.
• Where the same debt is both released from the seller and assumed by the buyer, only the amount assumed is counted, to avoid double-counting.
• Where debt is secured on the property and is held by co-owners, the amount of assumed debt is apportioned according to each person's share in the property.
• The chargeable consideration arising from debt can never exceed the market value of the property being transferred.