Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section 26

Tax bands and tax rates applicable when regulations cease to have effect

Section 26 deals with which tax bands and rates apply to land transactions that took place during a period when Welsh Ministers' regulations setting new rates were in force, but those regulations were subsequently rejected by the Senedd.

• When the Welsh Ministers introduce new LTT tax bands or rates by regulation that are later rejected by the Senedd, transactions completed during the period the regulations were in force (the "interim period") are generally taxed at the rates set by those rejected regulations.
• However, the old (pre-regulation) tax bands and rates apply instead if the buyer failed to file their return by the filing date and also failed to file by the end of the interim period, or if the first return required for the transaction was triggered by certain later events such as a contingency ceasing, a linked transaction, or a lease continuation.
• The old rates also apply where a buyer has made a claim for relief under section 63A of the Tax Collection and Management (Wales) Act 2016 and a further return is subsequently required for the same transaction under specified provisions, though any return already made before the relief claim is unaffected.
• Where the rejected regulations result in a higher tax charge than would otherwise have applied, the buyer may claim relief under section 63A of the Tax Collection and Management (Wales) Act 2016 for the difference.

---