Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section 20

Uncertain or unascertained consideration

Section 20 explains how to handle the tax calculation when all or part of the price paid for a land transaction is not yet known or depends on future events.

• Where the consideration (or part of it) for a land transaction is uncertain or unascertained, a reasonable estimate of its amount or value must be used for Land Transaction Tax purposes.
• Consideration is "uncertain" when its amount or value depends on future events that have not yet occurred and whose outcome is not known.
• The requirement to use a reasonable estimate applies whether the uncertainty affects the whole consideration or only part of it.
• If the actual consideration later turns out to differ from the estimate, the tax position may need to be revisited and adjusted accordingly.