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

Cases in which group relief not withdrawn E+W

9 (1) Group relief is not withdrawn under paragraph 8 in the following cases. E+W

(2) The first case is where the buyer ceases to be a member of the same group as the seller by reason of—

(a) anything done for the purposes of, or in the course of, winding up the seller or another company that is above the seller in the group structure, or

(b) the seller or another company that is above the seller in the group structure otherwise ceasing to exist.

(3) For the purposes of sub-paragraph (2), a company is ““above”” the seller in the group structure if the seller, or another company that is above the seller in the group structure, is a 75% subsidiary of the company.

(4) The second case is where—

(a) the buyer ceases to be a member of the same group as the seller as a result of an acquisition of shares by another company (“"the acquiring company””) in relation to which—

(i) section 75 of the Finance Act 1986 (c. 41) applies (stamp duty: acquisition relief), and

(ii) the conditions for relief under that section are met, and

(b) the buyer is immediately after that acquisition a member of the same group as the acquiring company.

(5) But in a case within sub-paragraph (4), sub-paragraph (6) applies if—

(a) the buyer ceases to be a member of the same group as the acquiring company—

(i) before the end of the period of 3 years beginning with the effective date of the relieved transaction, or

(ii) in pursuance of, or in connection with, arrangements made before the end of that period, and

(b) at the time the buyer ceases to be a member of the same group as the acquiring company, it or a relevant associated company holds a chargeable interest—

(i) that was acquired by the buyer in the relieved transaction, or

(ii) that is derived from an interest so acquired,

and that has not subsequently been acquired at market value under a chargeable transaction for which group relief was available but was not claimed.

(6) The provisions of this Schedule apply as if the buyer had then ceased to be a member of the same group as the seller.

(7) In sub-paragraph (5)—

• “"arrangements”” (“"trefniadau”") includes any scheme, agreement or understanding, whether or not legally enforceable;

• “"relevant associated company”” (“"cwmni cyswllt perthnasol”"), in relation to the buyer, means a company that is a member of the same group as the buyer that ceases to be a member of the same group as the acquiring company in consequence of the buyer so ceasing.

Commencement Information

I1 Sch. 16 para. 9 in force at 1.4.2018 by S.I. 2018/34, art. 3