2022 No. 1027 (W. 220)
The Land Transaction Tax (Tax Bands and Tax Rates) (Wales) (Amendment) Regulations 2022
Approved by Senedd Cymru
Made
Laid before Senedd Cymru
Coming into force
The Welsh Ministers make the following Regulations in exercise of the powers conferred on them by sections 24(1) and 78(1) of the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 20171.
Title and commencement1
The title of these Regulations is the Land Transaction Tax (Tax Bands and Tax Rates) (Wales) (Amendment) Regulations 2022 and they come into force on 10 October 2022.
Interpretation2
In these Regulations,—
a
“the 2018 Regulations” means the Land Transaction Tax (Tax Bands and Tax Rates) (Wales) Regulations 20182;
b
words and expressions used in these Regulations have the same meaning as they have in the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017.
Application
3
Subject to regulation 4, these Regulations have effect in relation to residential property transactions—
a
with an effective date on or after 10 October 2022; and
b
to which Table 1 of the Schedule to the 2018 Regulations applies.
4
These Regulations do not have effect in relation to any transaction specified in regulation 3—
a
if the buyer makes an election in accordance with regulation 6; and
b
either:
i
the transaction is effected in pursuance of a contract entered into and substantially performed before 10 October 2022; or
ii
the transaction is effected in pursuance of a contract entered into but not substantially performed before 10 October 2022 and is not excluded by regulation 5.
5
A transaction is excluded by this regulation if it is a transaction specified in regulation 3 which is effected in pursuance of a contract entered into before 10 October 2022 and where —
a
there is any variation of the contract, or assignment of rights under the contract, on or after 10 October 2022;
b
the transaction is effected in consequence of the exercise on or after 10 October 2022 of any option, right of pre-emption or similar right; or
c
on or after 10 October 2022 there is an assignment, subsale or other transaction relating to the whole or part of the subject-matter of the contract as a result of which a person other than the buyer under the contract becomes entitled to call for a transfer.
6
1
An election under regulation 4 must—
a
be included in a return made to the WRA in respect of the transaction, or in an amendment of that return; and
b
comply with any requirements specified by the WRA as to its form or the manner of its inclusion.
2
A buyer may only make an election under regulation 4 where the effect of such an election does not result in more tax being chargeable than would otherwise have been the case.
Amendment of the Land Transaction Tax (Tax Bands and Tax Rates) (Wales) Regulations 20187
1
The Schedule to the 2018 Regulations is amended as follows—
2
For Table 1 substitute—
Table 1Residential property transactions
Tax band
Relevant consideration
Percentage tax rate
Zero rate band
Not more than £225,000
0%
First tax band
More than £225,000 but not more than £400,000
6%
Second tax band
More than £400,000 but not more than £750,000
7.5%
Third tax band
More than £750,000 but not more than £1,500,000
10%
Fourth tax band
More than £1,500,000
12%
(This note is not part of the Regulations)