Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section 16

Exchanges

Section 16 explains how land transaction tax applies when two parties exchange land or property, treating each side of the exchange as a separate transaction.

• Where two parties swap land or property, each leg of the exchange is treated as a distinct and separate land transaction for LTT purposes.
• The two sides of an exchange are not treated as linked transactions, so each is assessed independently on its own terms.
• An exchange arises not only in a straightforward swap but also where a buyer's obligation to pay for a property is met wholly or partly by that buyer selling another property to the same person.
• Special rules in Schedule 4 determine the chargeable consideration for exchanges, partitions, and arrangements involving public or educational bodies.