Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section 34

Unit trust schemes

Section 34 explains how land transaction tax applies to unit trust schemes by treating them as if they were companies.

• For LTT purposes, the trustees of a unit trust scheme are treated as a company, and the rights of unit holders are treated as shares in that company.
• Where an umbrella scheme exists (one scheme with separate pooled funds), each separate pool is treated as its own unit trust scheme rather than the umbrella being treated as a single scheme.
• Despite being treated as a company for most LTT purposes, a unit trust scheme cannot claim group relief or reconstruction/acquisition relief.
• The Welsh Ministers have the power to exclude certain types of scheme from being treated as unit trust schemes for LTT purposes by making regulations.