Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section 28

Amount of tax chargeable: linked transactions

Section 28 explains how to calculate the Land Transaction Tax due on a chargeable transaction when it is part of a group of linked transactions.

• When transactions are linked, the tax is calculated by reference to the combined consideration for all linked transactions, not just the individual transaction's consideration.
• The total tax that would be due on the combined consideration is worked out first, then apportioned to each transaction based on its share of the total consideration.
• Rent elements are excluded from this calculation — the total consideration used in the formula includes only non-rent consideration across all the linked transactions.
• Where any part of the consideration for a linked transaction is rent, separate rules in Schedule 6 apply depending on whether the property is residential or non-residential.