Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section 23

Exceptions

Section 23 sets out the circumstances in which the deemed market value rule under section 22 does not apply to land transactions involving connected companies.

• The deemed market value rule does not apply where the buying company holds the property as trustee as part of its trust management business.
• The rule also does not apply where the buying company holds the property as trustee and the only reason the seller is connected with the company is because of the trustee relationship (as defined in section 1122(6) of the Corporation Tax Act 2010).
• A further exception applies where the seller is a company distributing its assets (for example, on winding up), provided neither the property nor any interest from which it derives has been the subject of a group relief claim by the seller within the three years before the transaction.
• In all these cases, "the company" refers to the company that is the buyer in the transaction.