Wales: Land transaction tax (LTT)—particular transactions and taxpayers
Produced in partnership with Andrew Evans of Geldards LLP
Wales: Land transaction tax (LTT)—particular transactions and taxpayers

The following Tax guidance note Produced in partnership with Andrew Evans of Geldards LLP provides comprehensive and up to date legal information covering:

  • Wales: Land transaction tax (LTT)—particular transactions and taxpayers
  • Residential land
  • Mixed use claims—garden and grounds
  • Residential leases
  • Leases–holding over
  • Multiple dwellings relief
  • Cross border transactions
  • Anti-avoidance—TAAR and GAAR
  • Targeted anti-avoidance rule (TAAR)
  • General anti-avoidance rule (GAAR)
  • more

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:

  1. residential leases

  2. mixed use claims—garden and grounds

  3. leases held over after their contractual termination date

  4. multiple dwellings relief

  5. cross border transactions including cross title properties

  6. anti-avoidance and the LTT targeted anti-avoidance rule (TAAR) and the general anti-avoidance rule (GAAR)

  7. property authorised investment funds (PAIFs) and co-ownership authorised contractual schemes (CoACS)

  8. partnerships, and

  9. Brexit

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.

Residential land

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

(b)