Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section 58

Deferral requests in cases of contingent or uncertain consideration

Section 58 allows a buyer to request that the Welsh Revenue Authority (WRA) defer payment of part of the land transaction tax where the purchase price depends on future events that are uncertain or contingent.

• Where all or part of the consideration for a land transaction is contingent or uncertain, the buyer may submit a deferral request to WRA alongside the first tax return, asking to defer payment of a specified amount of tax up to a calculated maximum (the "deferrable amount").
• WRA must agree to the deferral request provided the return and request are filed on time, the request contains all required details (including the amount, the calculation, the reasons for contingency or uncertainty, and a proposed end date), the requested amount does not exceed the deferrable amount, and the transaction is not part of a tax avoidance arrangement.
• If the requested amount exceeds the deferrable amount, WRA may still grant a partial deferral up to the deferrable amount; otherwise, if the conditions are not met, WRA must refuse the request.
• The deferral period runs from the filing date until either the expected end date or the date on which the contingency is resolved or the uncertain consideration becomes ascertained, whichever comes first; if no end date can be predicted, the default is five years from the effective date of the transaction.