Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section 47

Contingency ceases or consideration is ascertained: duty to make return

Section 47 requires the buyer to file a further return with the Welsh Revenue Authority (WRA) when a contingency is resolved or uncertain consideration becomes known, and this results in additional or new tax being due.

• Where a land transaction involves contingent, uncertain, or unascertained consideration, the buyer must file a return with WRA if a triggering event causes the transaction to become notifiable, creates additional tax liability, or creates a tax liability where none previously existed.
• A triggering event occurs when a contingency either happens or definitively will not happen, or when an amount relevant to calculating uncertain or unascertained consideration becomes known.
• The return must be filed within 30 days of the triggering event and must include a self-assessment of the tax due. Late payment interest runs from 30 days after the effective date of the original transaction, not from the date of the triggering event.
• This section does not apply where the chargeable consideration consists of rent (which is dealt with under Schedule 6) or annuities covered by section 21 of the Act.

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