Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section 21

Annuities

Section 21 explains how annuities and other periodic payments (excluding rent) forming part of the chargeable consideration for a land transaction are to be valued for Land Transaction Tax purposes.

• Where an annuity is payable for life, in perpetuity, for an indefinite period, or for a definite period exceeding 12 years, only 12 years' worth of annual payments count towards the chargeable consideration.
• If the annual amount varies or may vary, the 12 highest annual payments are used in the calculation.
• Inflation-linked adjustments tied to the retail prices index, the consumer prices index, or any similar inflation index are ignored when determining the amounts payable.
• The term "annuity" is broadly defined to include any periodic consideration other than rent, and each annual payment corresponds to a successive 12-month period starting from the effective date of the transaction.