Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 11 para 9

Condition 4: registration of a legal charge in favour of WRA

Schedule 11, paragraph 9 sets out Condition 4 for alternative finance investment bond relief, which requires the bond-holder (B) to register a satisfactory legal charge in favour of the Welsh Revenue Authority (WRA) within 120 days of the first transaction.

• B must provide WRA with prescribed evidence that a legal charge has been entered in the Land Registry within 120 days of the effective date of the first transaction.
• The charge must be a first charge on the interest transferred to B and must be in favour of WRA.
• The charge must cover the full amount of LTT that would have been payable on the first transaction based on market value, calculated as if the relief under paragraph 13 did not apply.
• The charge must also cover any interest and penalties that would have accrued if that tax had been due but unpaid on the first transaction.