Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section 70

Meaning of market value

Section 70 defines how market value is to be determined for the purposes of Land Transaction Tax.

• Market value for LTT purposes is determined using the same approach as for Capital Gains Tax under the Taxation of Chargeable Gains Act 1992.
• This means market value is generally the price a property would fetch on the open market, with no reduction for the assumption that the whole property is placed on the market at one time.
• By adopting the CGT definition, LTT aligns with a well-established and widely understood valuation framework already familiar to practitioners.
• This definition is relevant whenever the Act requires a transaction to be valued at market value, for example in connected party transactions or exchanges of property.