Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section 5

Exempt interest

Section 5 identifies specific types of interests in land that are exempt from land transaction tax, meaning that acquiring these interests does not trigger a tax charge.

• Security interests (such as mortgages held to secure a debt), licences to use or occupy land, tenancies at will, and franchises or manors are all exempt from land transaction tax.
• A security interest is any interest or right (other than a rentcharge) held for the purpose of securing payment of money or the performance of an obligation — for example, a lender's charge over a property.
• A franchise in this context means a historic grant from the Crown, such as the right to hold a market or fair, or the right to collect tolls — it does not refer to a commercial franchise arrangement.
• The Welsh Ministers have the power to amend the list of exempt interests by regulations, whether to add new exemptions, remove existing ones, or vary the descriptions of exempt interests.