Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 2 paragraph 9

Assignment of rights: rescission or annulment after substantial performance

Schedule 2, paragraph 9 deals with what happens to LTT already paid by the transferor when the original contract is subsequently rescinded, annulled, or otherwise falls through after the transferee has substantially performed it.

• This paragraph applies where the transferor was treated as making a separate notional acquisition because the transferee substantially performed the original contract.
• If the original contract is later rescinded, annulled, or not carried into effect (in whole or in part), the Welsh Revenue Authority must repay the LTT paid on the transferor's notional acquisition and any additional notional transaction, to the extent the contract was not carried into effect.
• A repayment is only due if the taxpayer makes a formal claim by amending the relevant LTT return for the notional or additional notional land transaction.
• The amendment must be made in accordance with section 41 of the Tax Collection and Management (Wales) Act 2016, which governs taxpayer amendments to tax returns.