Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section 27

Amount of tax chargeable: transactions which are not linked

Section 27 explains how to calculate the Land Transaction Tax due on a standalone chargeable transaction that is not linked to any other transactions.

• LTT on a standalone transaction is calculated by applying the relevant tax rate for each band to the portion of the chargeable consideration falling within that band, then adding the results together.
• This is a progressive or "slice" system, similar to income tax bands, where each portion of the price is taxed at the rate applicable to the band it falls within.
• This calculation method does not apply to the rent element of lease transactions — separate rules apply for calculating tax on rent under residential and non-residential leases.
• Where transactions are linked (for example, forming part of a series of connected deals), a different calculation under section 28 applies instead.