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

[F1 PART 1 E+W Key terms

Textual Amendments

F1 Sch. 21A inserted (26.11.2024) by The Land Transaction Tax (Relief for Special Tax Sites) (Wales) Regulations 2024 (S.I. 2024/1193), regs. 1(2), 2(5)

Meaning of transaction land E+W

1. E+W In this Schedule, “transaction land”, in relation to a land transaction, means land a chargeable interest in which is the subject matter of the transaction.

Meaning of special tax site E+W

[F2 2. E+W In this Schedule, “special tax site” means the areas designated as special areas by—

(a) the Designation of Special Tax Sites (Celtic Freeport) Regulations 2024 (S.I. 2024/1035) as made on 16 October 2024;

(b) the Designation of Special Tax Sites (Anglesey Freeport) Regulations 2024 (S.I. 2024/1286) as made on 4 December 2024.]

Textual Amendments

F2 Sch. 21A para. 2 substituted (23.1.2025) by The Land Transaction Tax (Modification of Special Tax Sites Relief) (Wales) Regulations 2025 (S.I. 2025/54), regs. 1(2), 2(2)

Meaning of qualifying land E+W

3. E+W For the purposes of this Schedule, transaction land is “qualifying land” if, on the effective date of the land transaction—

(a) it is situated in a special tax site, and

(b) the buyer intends it to be used exclusively in a qualifying manner.

Meaning of qualifying manner E+W

4. (1) For the purposes of this Schedule, transaction land is used in a qualifying manner if it is used in one or more of the following ways— E+W

(a) it is used by the buyer or a connected person in the course of a commercial trade or profession;

(b) it is developed or redeveloped by the buyer or a connected person for use (by any person) in the course of a commercial trade or profession;

(c) it is exploited by the buyer or a connected person, in the course of a commercial trade or profession, as a source of rents or other receipts (other than excluded rents).

(2) But transaction land is not used in a qualifying manner to the extent that it is—

(a) used as a dwelling or as the garden or grounds of a dwelling (including any building or other structure on such land),

(b) developed or redeveloped to become residential property,

(c) exploited as a source of rents or other receipts payable by a person using the land otherwise than in a qualifying manner, or

(d) held (as stock of the business) for resale without development or redevelopment.

(3) Despite sub-paragraph (2), transaction land is used in a qualifying manner to the extent it is used as a dwelling or as the garden or grounds of a dwelling that is provided to an individual and the individual’s family for the better performance of the individual’s employment duties as caretaker of, or as a member of the security staff for, the transaction land or any part of it.

(4) For the purposes of this paragraph, use of land in the course of a commercial trade or profession includes use of land for a purpose that is ancillary to the use of other land which—

(a) is situated in a special tax site, and

(b) is being used, or developed or redeveloped, in the course of a commercial trade or profession.

(5) The references in this paragraph to doing something in the course of a commercial trade or profession include doing something in the course of a property rental business.

(6) In this paragraph—

• “commercial” (“masnachol”) in relation to a trade or profession, means carried on—

  (a)

  on a commercial basis, and

  (b)

  with a view to profit;

• “excluded rents” (“rhenti wedi eu heithrio”) means income within any of classes 1 to 6 in the table in section 605(2) of the Corporation Tax Act 2010 (c. 4);

• “property rental business” (“busnes rhentu eiddo”) has the same meaning as a “property business” in the Income Tax (Trading and Other Income) Act 2005 (c. 5) (see section 263(6) of that Act).”]