Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section 22

Deemed market value

Section 22 requires that when a company buys land from a connected party, or pays for the land using shares in a connected company, the transaction must be taxed on at least the market value of the property.

• This rule applies where the buyer is a company and either the seller is connected with the buyer, or the consideration includes shares in a company connected with the seller.
• The chargeable consideration is the higher of the market value of the property at the effective date of the transaction, or the actual consideration that would otherwise apply.
• If the transaction involves the grant of a lease at a rent, the rent element is also included alongside the market value figure.
• The normal exemption for transactions with no chargeable consideration does not apply where this section is in effect, though other statutory exceptions and reliefs may still be available.