Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section 6

Acquisition and disposal of chargeable interest

Section 6 defines what counts as an acquisition and a disposal of a chargeable interest for land transaction tax purposes, and identifies who is treated as the acquirer and who is treated as the person disposing.

• Creating, surrendering, releasing, or varying a chargeable interest each counts as both an acquisition and a disposal for LTT purposes.
• Varying a lease only counts as an acquisition and disposal where it is treated as the grant of a new lease, or where specific rules about reducing rent, term, or other lease variations apply.
• A person acquires a chargeable interest when they become entitled to a newly created interest, benefit from a surrender or release, or benefit from a variation of the interest.
• A person disposes of a chargeable interest when their interest becomes subject to a newly created interest, they cease to hold a surrendered or released interest, or their interest is diminished by a variation.