Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 / Deddf Treth Trafodiadau Tir a Gwrthweithio Osgoi Trethi Datganoledig (Cymru) 2017
Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 / Deddf Treth Trafodiadau Tir a Gwrthweithio Osgoi Trethi Datganoledig (Cymru) 2017 (2017 anaw 1)
- Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 / Deddf Treth Trafodiadau Tir a Gwrthweithio Osgoi Trethi Datganoledig (Cymru) 2017 (2017 anaw 1)
- PART 1 OVERVIEW
- 1 Overview of Act
- PART 2 THE TAX AND KEY CONCEPTS
- CHAPTER 1 LAND TRANSACTION TAX
- 2 Land transaction tax
- CHAPTER 2 LAND TRANSACTIONS
- 3 Land transaction
- 4 Chargeable interest
- 5 Exempt interest
- 6 Acquisition and disposal of chargeable interest
- 7 Buyer and seller
- 8 Linked transactions
- 9 Land partly in Wales and partly in England
- CHAPTER 3 PARTICULAR TRANSACTIONS
- Contracts and transfers: general provision
- 10 Contract and transfer
- Contracts and transfers: particular cases
- 11 Contract providing for transfer to third party
- 12 Contract providing for transfer to third party: effect of transfer of rights
- 13 Pre-completion transactions
- Substantial performance
- 14 Meaning of substantial performance
- Options etc.
- 15 Options and rights of pre-emption
- Exchanges
- 16 Exchanges
- CHAPTER 4 CHARGEABLE TRANSACTIONS AND CHARGEABLE CONSIDERATION
- Chargeable transactions
- 17 Chargeable transaction
- Chargeable consideration
- 18 Chargeable consideration
- 19 Contingent consideration
- 20 Uncertain or unascertained consideration
- 21 Annuities
- 22 Deemed market value
- 23 Exceptions
- PART 3 CALCULATION OF TAX AND RELIEFS
- Calculation of tax
- 24 Regulations specifying tax bands and tax rates
- 25 Procedure for regulations specifying tax bands and tax rates
- 26 Tax bands and tax rates applicable when regulations cease to have effect
- 27 Amount of tax chargeable: transactions which are not linked
- 28 Amount of tax chargeable: linked transactions
- 29 Calculation provisions subject to certain provisions about reliefs
- Reliefs
- 30 Reliefs
- 31 Reliefs: anti-avoidance
- PART 4 LEASES
- 32 Leases
- PART 5 APPLICATION OF ACT AND TCMA TO CERTAIN PERSONS AND BODIES
- 33 Companies
- 34 Unit trust schemes
- 35 Open-ended investment companies
- 36 Co-ownership authorised contractual schemes
- 37 Joint buyers: general rules
- 38 Joint buyers: returns and declarations
- 39 Joint buyers: enquiries and assessments
- 40 Joint buyers: appeals and reviews
- 41 Partnerships
- 42 Trusts
- 43 Persons acting in a representative capacity
- PART 6 RETURNS AND PAYMENTS
- CHAPTER 1 RETURNS
- Duty to make return
- 44 Duty to make a return
- Notifiable transactions
- 45 Notifiable transactions
- 46 Exceptions for certain acquisitions of major interests in land
- Adjustments
- 47 Contingency ceases or consideration is ascertained: duty to make return
- 48 Contingency ceases or consideration ascertained: repayment of tax
- 49 Further return where relief is withdrawn
- 50 Single return in respect of linked transactions with same effective date
- 51 Return as a result of later linked transaction
- 52 Power to amend period in which returns must be made
- Declarations
- 53 Declaration
- 54 Buyer with a disability: declaration by the Official Solicitor
- 55 Declaration by person authorised to act on behalf of individual
- CHAPTER 2 LIABILITY FOR AND PAYMENT OF TAX
- Liability for tax
- 56 Liability for tax
- Payment of tax
- 57 Payment of tax
- CHAPTER 3 DEFERRAL OF TAX
- 58 Deferral requests in cases of contingent or uncertain consideration
- 59 Calculation of deferrable amount
- 60 Deferral requests: notices of WRA decisions
- 61 Deferral requests: effect of WRA's decision
- 62 Variation of deferral requests
- 63 Failure to comply with WRA's agreement to defer
- 64 Regulations about deferral of tax
- CHAPTER 4 REGISTRATION OF LAND TRANSACTIONS
- 65 Registration of land transactions
- PART 7 GENERAL ANTI-AVOIDANCE RULE
- 66 General anti-avoidance rule
- PART 8 INTERPRETATION AND FINAL PROVISIONS
- Interpretation
- 67 Meaning of tax
- 68 Meaning of major interest in land
- 69 Meaning of subject-matter and main subject-matter
- 70 Meaning of market value
- 71 Meaning of effective date of transaction
- 72 Meaning of residential property
- 73 Meaning of dwelling
- 74 References to connected persons
- 75 Other definitions
- Amendments to the Tax Collection and Management (Wales) Act 2016
- 76 Amendments to TCMA
- Independent review
- 77 Independent review of land transaction tax
- Final provisions
- 78 Power to make consequential etc. provision
- 79 Regulations
- 80 Crown application
- 81 Coming into force
- 82 Short title
- SCHEDULE 1 OVERVIEW OF SCHEDULES
- SCHEDULE 2 PRE-COMPLETION TRANSACTIONS
- PART 1 INTRODUCTION AND KEY CONCEPTS
- Overview
- Application of this Schedule
- Meaning of ““pre-completion transaction””
- Other key terms
- Tax not charged on transferee by reason of the pre-completion transaction
- PART 2 PRE-COMPLETION TRANSACTIONS WHICH ARE ASSIGNMENTS OF RIGHTS
- Pre-completion transactions which are assignments of rights
- Assignments of rights: application of rules about completion and consideration
- Assignment of rights: transferor treated as making separate acquisition
- Notional land transactions: effect of rescission etc. following substantial performance
- Assignment of rights relating to part only of original contract
- Assignment of rights: references to ““the seller””
- PART 3 PRE-COMPLETION TRANSACTIONS WHICH ARE FREE-STANDING TRANSFERS
- Pre-completion transactions which are free-standing transfers
- Free-standing transfers: consideration and substantial performance
- References to ““the seller”” in cases involving free-standing transfers
- PART 4 THE MINIMUM CONSIDERATION RULE
- The minimum consideration rule
- The first minimum amount
- The second minimum amount
- PART 5 RELIEFS
- Relief for transferor: assignment of rights
- Relief for original buyer: qualifying subsales
- PART 6 INTERPRETATION AND INDEX
- Interpretation
- Index of expressions defined in this Schedule
- SCHEDULE 3 TRANSACTIONS EXEMPT FROM CHARGE
- No chargeable consideration
- Acquisitions by the Crown
- Transactions in connection with divorce etc.
- Transactions in connection with dissolution of civil partnership etc.
- Assents and appropriations by personal representatives
- Variation of testamentary dispositions etc.
- Power to add, remove or vary exemptions
- SCHEDULE 4 CHARGEABLE CONSIDERATION
- Money or money's worth
- Value added tax
- Postponed consideration
- Just and reasonable apportionment
- Exchanges
- Partition etc.: disregard of existing interest
- Valuation of non-monetary consideration
- Debt as consideration
- Cases where conditions for exemption not fully met
- Conversion of amounts in foreign currency
- Carrying out of works
- Provision of services
- Land transaction entered into by reason of employment
- Indemnity given by buyer
- Buyer bearing inheritance tax liability
- Buyer bearing capital gains tax liability
- Costs of enfranchisement
- Arrangements involving public or educational bodies
- SCHEDULE 5 HIGHER RATES RESIDENTIAL PROPERTY TRANSACTIONS
- PART 1 INTRODUCTORY
- Overview
- PART 2 BUYER IS AN INDIVIDUAL: SINGLE DWELLING TRANSACTIONS
- Introductory
- Higher rates residential property transactions
- Buyer has a major interest in other dwelling
- Two or more buyers
- Interest in same main residence exception
- Replacement of main residence exception
- Replacement of main residence: transactions during interim period
- Subsequent disposal to local authorities exception: buyer is an individual in a single dwelling transaction
- PART 3 BUYER IS AN INDIVIDUAL: MULTIPLE DWELLING TRANSACTIONS
- Introductory
- Higher rates residential property transaction
- Two or more buyers
- Two or more qualifying dwellings
- Subsidiary dwelling exception
- Buyer has a major interest in other dwelling
- Interest in same main residence exception
- Replacement of main residence exception
- Replacement of main residence: transactions during interim period
- Subsequent disposal to local authorities exception: multiple dwelling transactions
- PART 4 BUYER IS NOT AN INDIVIDUAL
- Introductory
- Transaction involving a dwelling
- Subsequent disposal to local authorities exception: transaction involving a dwelling
- Transaction involving multiple dwellings
- Subsequent disposal to local authorities exception: transaction involving multiple dwellings
- Two or more buyers
- PART 5 SUPPLEMENTARY PROVISIONS
- Further provision in connection with replacement of main residence exception
- Further provision in connection with subsequent disposal to local authorities exception
- Further provision in connection with transactions being treated as higher rates residential property transactions
- Spouses and civil partners purchasing alone
- Property adjustment on divorce, dissolution of civil partnership etc.
- Settlements and bare trusts
- Partnerships
- Alternative finance arrangements
- Major interests in dwellings inherited jointly
- PART 6 INTERPRETATION
- Dwellings outside Wales
- What counts as a dwelling
- Major interest not to include certain leases
- Other definitions
- SCHEDULE 6 LEASES
- PART 1 INTRODUCTORY
- Overview
- PART 2 DURATION OF LEASE AND TREATMENT OF OVERLAPPING LEASES
- Lease for a fixed term
- Leases that continue after a fixed term
- Leases that continue after a fixed term: grant of a new lease
- Leases for an indefinite term
- Successive linked leases
- Rent for overlap period in case of grant of further lease
- Tenant holding over: new lease backdated to previous year
- PART 3 RENT AND OTHER CONSIDERATION
- Rent
- Variable or uncertain rent
- First rent review in final quarter of fifth year
- Adjustment of tax where rent determined on reconsideration date
- Underpayment of tax where rent determined on reconsideration date
- Overpayment of tax where rent determined on reconsideration date
- Reverse premiums
- Tenants' obligations etc. that do not count as chargeable consideration
- Surrender of existing lease in return for new lease
- Assignment of lease: assumption of obligations by assignee
- Loan or deposit in connection with grant or assignment of lease
- PART 4 AGREEMENTS FOR LEASE, ASSIGNMENTS AND VARIATIONS
- Agreement for lease
- Assignment of agreement for lease
- Cases where assignment of lease treated as grant of lease
- Assignment of lease
- Reduction of rent or term or other variation of lease
- Increase of rent treated as grant of new lease: variation of lease in first 5 years
- PART 5 CALCULATION OF TAX CHARGEABLE
- Residential leases, non-residential leases and mixed leases
- No tax chargeable in respect of rent: residential leases
- Tax rates and bands: rent element of non-residential and mixed leases
- Calculation of tax chargeable in respect of rent: non-residential and mixed leases
- Calculation of tax chargeable in respect of rent: linked transactions
- Net present value
- Temporal discount rate
- Tax chargeable in respect of consideration other than rent: general
- Tax chargeable in respect of consideration other than rent: no zero rate band for non-residential leases
- Tax chargeable in respect of consideration other than rent: mixed leases
- Relevant rent
- Power to amend or repeal paragraphs 34 to 36
- SCHEDULE 7 PARTNERSHIPS
- PART 1 INTRODUCTORY
- Overview
- PART 2 GENERAL PROVISIONS
- Partnerships
- Chargeable interests treated as held by partners etc.
- Acquisition of interest in partnership not chargeable except as specially provided
- Continuity of partnerships
- Partnership not to be regarded as a unit trust scheme etc.
- PART 3 ORDINARY PARTNERSHIP TRANSACTIONS
- Introduction
- Responsibility of partners
- Representative partners
- Joint and several liability of responsible partners
- PART 4 TRANSACTIONS INVOLVING TRANSFERS TO A PARTNERSHIP
- Introduction
- Transfer of chargeable interest to a partnership: general
- Transfer of chargeable interest to a partnership: sum of the lower proportions
- Relevant owner
- Corresponding partner
- Proportion of chargeable interest attributable to corresponding partner
- Transfer of partnership interest pursuant to tax avoidance arrangements
- Withdrawal of money etc. from partnership after transfer of chargeable interest
- PART 5 TRANSACTIONS INVOLVING TRANSFERS FROM A PARTNERSHIP
- Introduction
- Transfer of chargeable interest from a partnership: general
- Transfer of chargeable interest from a partnership: sum of the lower proportions
- Relevant owner
- Corresponding partner
- Proportion of chargeable interest attributable to corresponding partner
- Partnership share attributable to corresponding partner: effective date of transfer before 20 October 2003
- Partnership share attributable to corresponding partner: effective date of transfer on or after 20 October 2003
- PART 6 OTHER PARTNERSHIP TRANSACTIONS
- Introduction
- Transfer of chargeable interest from a partnership to a partnership
- Transfer of chargeable interest from a partnership consisting wholly of bodies corporate
- PART 7 APPLICATION OF PARTS 5 AND 6 IN RELATION TO LEASES
- Transfer of chargeable interest to or from a partnership: chargeable consideration including rent
- PART 8 TRANSFERS INVOLVING PROPERTY-INVESTMENT PARTNERSHIPS
- Introduction
- Meaning of property investment partnerships
- Transfer of interest in property-investment partnership
- Exclusion of market rent leases
- Election by property-investment partnership to disapply paragraph 13
- Partnership interests: application of provisions about exchange
- PART 9 APPLICATION OF EXEMPTIONS, RELIEFS, PROVISIONS OF TCMA AND NOTIFICATION PROVISIONS
- Introduction
- Application of exemptions and reliefs
- Application of group relief
- Sum of the lower portions: connected company
- Application of charities relief
- Modifications of TCMA in relation to partnerships
- Notification of transfer of partnership interest
- PART 10 INTERPRETATION
- Partnership property and partnership share
- Transfer of a chargeable interest
- Transfer of chargeable interest to a partnership
- Transfer of interest in a partnership
- Transfer of a chargeable interest from a partnership
- Market value of leases
- Connected persons
- Arrangements
- SCHEDULE 8 TRUSTS
- Overview
- Key terms
- Bare trusts
- Acquisition by trustees of settlement
- Consideration for exercise of power of appointment or discretion
- Reallocation of trust property as between beneficiaries
- Responsibility of trustees of settlement
- Relevant trustees for purposes of return etc.
- Relevant trustees: enquiries and assessments
- Relevant trustees: appeals and reviews
- Interests of beneficiaries under certain trusts
- SCHEDULE 9 SALE AND LEASEBACK RELIEF
- The relief
- Sale and leaseback arrangements
- Qualifying conditions
- SCHEDULE 10 ALTERNATIVE PROPERTY FINANCE RELIEFS
- PART 1 INTRODUCTORY
- Overview
- PART 2 THE RELIEFS
- Land sold to financial institution and leased to a person
- Land sold to financial institution and re-sold to a person
- References to P where P is an individual who has died
- PART 3 CIRCUMSTANCES WHERE ARRANGEMENTS NOT RELIEVED
- No relief where group relief, acquisition relief or reconstruction relief available on first transaction
- Land sold to financial institution and leased to a person: arrangements to transfer control of institution
- PART 4 EXEMPT INTEREST
- Interest held by financial institution an exempt interest
- PART 5 INTERPRETATION
- Meaning of ““financial institution””
- Meaning of ““arrangements””
- SCHEDULE 11 RELIEF FOR ALTERNATIVE FINANCE INVESTMENT BONDS
- PART 1 INTRODUCTORY
- Overview
- Interpretation
- PART 2 ISSUE, TRANSFER AND REDEMPTION OF RIGHTS UNDER BOND NOT TO BE TREATED AS CHARGEABLE TRANSACTION
- Bond-holder not to be treated as having an interest in the bond assets
- Bond-holder treated as having an interest if control of underlying asset acquired
- PART 3 CONDITIONS FOR OPERATION OF RELIEFS ETC.
- Introduction
- Condition 1
- Condition 2
- Condition 3
- Condition 4
- Condition 5
- Condition 6
- Condition 7
- PART 4 RELIEF FOR CERTAIN TRANSACTIONS
- Relief for the first transaction
- Withdrawal of relief for the first transaction
- Relief for the second transaction
- Discharge of charge when conditions for relief met
- Relief not available where bond-holder acquires control of underlying asset
- PART 5 SUPPLEMENTARY
- Replacement of asset
- WRA to notify Registrar of discharge of charge
- SCHEDULE 12 RELIEF FOR INCORPORATION OF LIMITED LIABILITY PARTNERSHIP
- The relief
- Condition A
- Condition B
- Condition C
- Interpretation
- SCHEDULE 13 RELIEF FOR ACQUISITIONS INVOLVING MULTIPLE DWELLINGS
- Overview
- Transactions to which this Schedule applies
- Key terms
- The amount of tax chargeable
- Determining the tax related to the consideration attributable to dwellings
- Determining the tax related to the remaining consideration
- Circumstances in which subsidiary dwellings do not count as separate dwellings
- Certain buildings not yet constructed or adapted to count as a dwelling
- SCHEDULE 14 RELIEF FOR CERTAIN ACQUISITIONS OF DWELLINGS
- PART 1 INTRODUCTORY
- Overview
- PART 2 RELIEF FOR CERTAIN ACQUISITIONS OF DWELLINGS
- Acquisition by housebuilder from individual acquiring new dwelling
- Acquisition by property trader from individual acquiring new dwelling
- Acquisition by property trader from individual where chain of transactions breaks down
- Relief for acquisition by property trader from personal representatives
- Acquisition by property trader in case of relocation of employment
- Acquisition by employer in case of relocation of employment
- Withdrawal of reliefs available to property traders
- Interpretation
- PART 3 RELIEF FOR PERSONS EXERCISING COLLECTIVE RIGHTS
- Relief for transactions entered into by persons exercising collective rights
- SCHEDULE 15 RELIEF FOR CERTAIN TRANSACTIONS RELATING TO SOCIAL HOUSING
- PART 1 INTRODUCTORY
- Overview
- PART 2 Public Sector Discount Relief
- Relief for public sector discount transactions
- PART 3 SHARED OWNERSHIP LEASES
- Shared ownership lease: election for market value treatment
- Shared ownership lease: transfer of reversion where election made for market value treatment
- Shared ownership lease: election for market value treatment of premium where staircasing allowed
- Shared ownership lease: staircasing transactions
- Shared ownership lease: grant not linked with staircasing transactions etc.
- Rent to shared ownership lease: charge to tax
- Shared ownership leases: interpretation
- PART 4 SHARED OWNERSHIP TRUSTS
- Shared ownership trusts: meaning of shared ownership trust and other key terms
- Shared ownership trust: the buyer
- Shared ownership trust: election for market value treatment
- Shared ownership trust transfer upon termination
- Shared ownership trust: staircasing transactions
- Shared ownership trust: treatment of additional payments where no election made
- Shared ownership trust: declaration not linked with staircasing etc.
- Rent to shared ownership trust: charge to tax
- PART 5 RENT TO MORTGAGE
- Rent to mortgage: chargeable consideration
- PART 6 RELIEF FOR CERTAIN ACQUISITIONS BY REGISTERED SOCIAL LANDLORDS
- Relief for certain acquisitions by registered social landlords
- SCHEDULE 16 GROUP RELIEF
- PART 1 INTRODUCTORY
- Overview
- PART 2 THE RELIEF
- Group relief
- Group relief: interpretation
- PART 3 RESTRICTIONS ON AVAILABILITY OF RELIEF
- Restrictions on availability of group relief
- Certain arrangements not within paragraph 4: joint venture companies
- Certain mortgage arrangements not within paragraph 4
- PART 4 WITHDRAWAL OF RELIEF
- Interpretation: relieved transaction
- Withdrawal of group relief
- Cases in which group relief not withdrawn
- Group relief not withdrawn where seller leaves group
- Group relief not withdrawn as a result of certain transfers of business etc. by mutual societies
- Withdrawal of group relief in certain cases involving successive transactions
- PART 5 RECOVERY OF RELIEF FROM CERTAIN PERSONS
- Recovery of group relief from another group company or controlling director
- Recovery of group relief: supplementary
- SCHEDULE 17 RECONSTRUCTION AND ACQUISITION RELIEFS
- PART 1 INTRODUCTORY
- Overview
- PART 2 RECONSTRUCTION RELIEF
- Reconstruction relief
- PART 3 ACQUISITION RELIEF
- Acquisition relief
- PART 4 WITHDRAWAL OF RECONSTRUCTION OR ACQUISITION RELIEF
- Interpretation
- Withdrawal of reconstruction or acquisition relief
- Cases in which reconstruction or acquisition relief not withdrawn
- Withdrawal of reconstruction or acquisition relief on subsequent non-exempt transfer
- PART 5 RECOVERY OF RECONSTRUCTION OR ACQUISITION RELIEF
- Recovery of reconstruction or acquisition relief from another group company or controlling director
- Recovery of reconstruction or acquisition relief: supplementary
- SCHEDULE 18 CHARITIES RELIEF
- Overview
- Key terms
- Meaning of “charity”
- Meaning of “charity”: jurisdiction condition
- Meaning of “charity”: registration condition
- Meaning of “charity”: management condition
- The relief
- Withdrawal of charities relief
- Charity not a qualifying charity
- Joint purchase by qualifying charity and another person: partial relief
- Withdrawal of partial relief
- Partial relief: charity not a qualifying charity
- Application of this Schedule to certain trusts
- SCHEDULE 19 OPEN-ENDED INVESTMENT COMPANY RELIEFS
- Relief from land transaction tax: conversion of an authorised unit trust to an open-ended investment company
- Relief from land transaction tax: amalgamation of an authorised unit trust with an open-ended investment company
- Interpretation
- SCHEDULE 20 RELIEF FOR ACQUISITIONS BY PUBLIC BODIES AND HEALTH BODIES
- Relief for certain acquisitions involving public bodies
- Relief for acquisitions by certain health service bodies
- SCHEDULE 21 COMPULSORY PURCHASE RELIEF AND PLANNING OBLIGATIONS RELIEF
- Relief for compulsory purchase facilitating development
- Relief for compliance with planning obligations
- SCHEDULE 21A RELIEF FOR SPECIAL TAX SITES
- PART 1 Key terms
- Meaning of transaction land
- Meaning of special tax site
- Meaning of qualifying land
- Meaning of qualifying manner
- PART 2 The Relief
- Meaning of relief period
- Full relief
- Partial relief
- Attributing chargeable consideration to land
- Contract completed by transfer after the end of the relief period
- PART 3 Withdrawal of relief
- Withdrawal of relief
- The control period
- Disposal of interest in part of qualifying land during control period
- PART 4 ALTERNATIVE FINANCE ARRANGEMENT
- Alternative Property Finance
- SCHEDULE 22 MISCELLANEOUS RELIEFS
- Lighthouses reliefs
- Visiting forces and international military headquarters reliefs
- Relief for property accepted in satisfaction of tax
- Trunk roads relief
- Relief for acquisitions by bodies established for national purposes
- Relief for acquisitions in consequence of reorganisation of parliamentary constituencies
- Building societies relief
- Friendly societies relief
- Co-operative and community benefit society and credit union relief
- SCHEDULE 23 AMENDMENTS TO THE TAX COLLECTION AND MANAGEMENT (WALES) ACT 2016
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