Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section 72

Meaning of residential property

Section 72 defines what counts as residential property and non-residential property for the purposes of Land Transaction Tax, including special rules for certain types of accommodation and bulk purchases of dwellings.

• Residential property includes dwellings (or buildings being constructed or adapted as dwellings), their gardens and grounds, and any associated land rights.
• Certain accommodation types — such as school boarding houses, student residential accommodation (other than halls of residence), military quarters, and institutions where at least 90% of residents live permanently — are treated as dwellings.
• Children's homes, university halls of residence, care homes, hospitals, hospices, prisons, and hotels are specifically excluded from being treated as dwellings, even if the buildings could theoretically be used as residential property.
• A transaction involving six or more dwellings in a single purchase or lease is treated as a non-residential transaction, attracting non-residential LTT rates instead of residential rates.