Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section 59

Calculation of deferrable amount

Section 59 sets out how to calculate the amount of Land Transaction Tax that can be deferred where the consideration for a land transaction includes contingent or uncertain elements.

• Calculate the total LTT due on the full chargeable consideration (including contingent or uncertain amounts) using the normal tax calculation rules.
• Identify the "deferred consideration" — the portion of consideration that is contingent or uncertain, has not yet been paid, is not rent or an annuity, and is due on one or more future dates where at least one date falls (or may fall) more than six months after the effective date of the transaction.
• Recalculate the LTT as if the total chargeable consideration were reduced by the deferred consideration amount.
• The deferrable amount is the difference between the full tax figure and the reduced tax figure — this is the portion of LTT that may be deferred.