Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section 15

Options and rights of pre-emption

Section 15 explains how options and rights of pre-emption over land are treated as separate land transactions for Land Transaction Tax purposes.

• Acquiring an option or right of pre-emption is a land transaction in its own right, separate from any transaction that may follow if the option or right is exercised.
• The acquisition of the option or right and the subsequent land transaction may be treated as linked transactions under section 8, which could affect the rate of tax applied.
• The effective date for tax purposes is the date the option or right is acquired, not the date it becomes exercisable.
• If the option or right of pre-emption already forms part of a land transaction in its own right (independently of this section), this section does not apply to that element.

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