Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section 31

Reliefs: anti-avoidance

Section 31 prevents land transaction tax reliefs from being claimed where the transaction is, or forms part of, a tax avoidance arrangement.

• Relief under section 30 is denied if the land transaction is itself a tax avoidance arrangement, or if it forms part of wider arrangements that constitute tax avoidance.
• An arrangement qualifies as a tax avoidance arrangement if obtaining a tax advantage is the main purpose (or one of the main purposes) of the buyer, and the arrangement lacks genuine economic or commercial substance beyond securing that advantage.
• The definition of "arrangement" is very broad, covering any transaction, scheme, agreement, grant, understanding, promise, undertaking, or series of these — whether or not they are legally enforceable.
• The tax advantage that triggers these rules can relate not only to land transaction tax but also to income tax, corporation tax, capital gains tax, stamp duty land tax, stamp duty reserve tax, or stamp duty.