The following Tax guidance note Produced in partnership with Andrew Evans of Geldards LLP provides comprehensive and up to date legal information covering:
Land transaction tax (LTT) replaced stamp duty land tax (SDLT) in Wales with effect from 1 April 2018.
This Practice Note summarises how LTT applies to particular transactions where the LTT treatment is different from SDLT, including:
mixed use claims—garden and grounds
leases held over after their contractual termination date
multiple dwellings relief
cross border transactions including cross title properties
anti-avoidance and the LTT targeted anti-avoidance rule (TAAR) and the general anti-avoidance rule (GAAR)
property authorised investment funds (PAIFs) and co-ownership authorised contractual schemes (CoACS)
Where relevant, comparisons between LTT and SDLT are highlighted. This Practice Note expands on the basics of LTT set out in the Practice Note: Wales: Land transaction tax (LTT)—the basics.
Provision for LTT is contained in the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (LTTADT(W)A 2017). Statutory references are to the LTTADT(W)A 2017 unless stated otherwise.
There is a subtle but important difference in the definition of residential land between LTT and SDLT in that the ‘and’and the ‘or’ between the different parts of the definition for SDLT are not included in the definition for LTT.
This means that residential land for LTT purposes includes:
(a) a building that has been used or is suitable for use as a dwelling or is being constructed or adapted for such use
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