SCHEDULE 5 E+WHIGHER RATES RESIDENTIAL PROPERTY TRANSACTIONS

Modifications etc. (not altering text)

C1 Sch. 5 applied (with modifications) (1.4.2018) by The Land Transaction Tax (Transitional Provisions) (Wales) Regulations 2018 (S.I. 2018/126), regs. 1(2), 12

PART 4 E+WBUYER IS NOT AN INDIVIDUAL

Introductory E+W

19 E+WThis Part sets out when a chargeable transaction where the buyer is not an individual is a ““higher rates residential property transaction”” for the purpose of regulations under section 24(1)(b).

Commencement Information

I1 Sch. 5 para. 19 in force at 1.4.2018 by S.I. 2018/34, art. 3

Transaction involving a dwelling E+W

20 (1) A chargeable transaction is a higher rates residential property transaction if— E+W

(a) the buyer is not an individual,

(b) the main subject-matter of the transaction consists of a major interest in a dwelling (““the purchased dwelling””), and

(c) the chargeable consideration for the dwelling is £40,000 or more.

(2) But a transaction is not a higher rates residential property transaction under sub-paragraph (1) if at the end of the day that is the effective date of the transaction—

(a) the purchased dwelling is subject to a lease,

(b) the main subject-matter of the transaction is reversionary on that lease, and

(c) the lease meets the conditions set out in sub-paragraph (3).

(3) The conditions are that—

(a) the lease is not held by a person connected with the buyer, and

(b) the lease has an unexpired term of more than 21 years.

Commencement Information

I2 Sch. 5 para. 20 in force at 1.4.2018 by S.I. 2018/34, art. 3

Transaction involving multiple dwellings E+W

21 (1) A chargeable transaction is a higher rates residential property transaction if— E+W

(a) the buyer is not an individual,

(b) the main subject-matter of the transaction consists of a major interest in two or more dwellings (““the purchased dwellings””), and

(c) at least one of the purchased dwellings is a dwelling to which sub-paragraph (2) applies.

(2) This sub-paragraph applies to a purchased dwelling if the amount of the chargeable consideration for the transaction which is attributable on a just and reasonable basis to the purchased dwelling is £40,000 or more.

(3) But sub-paragraph (2) does not apply to a purchased dwelling if at the end of the day that is the effective date of the transaction—

(a) the purchased dwelling is subject to a lease,

(b) the main subject-matter of the transaction is reversionary on that lease, and

(c) the lease meets the conditions set out in sub-paragraph (4).

(4) The conditions are that—

(a) the lease is not held by a person connected with the buyer, and

(b) the lease has an unexpired term of more than 21 years.

(5) A transaction within section 72(9) is not a higher rates residential property transaction save where Schedule 13 applies (see in particular paragraph 6(6) of that Schedule).

Commencement Information

I3 Sch. 5 para. 21 in force at 1.4.2018 by S.I. 2018/34, art. 3

Two or more buyers E+W

22 E+WWhere there are two or more buyers in a transaction, the transaction is a higher rates residential property transaction if paragraph 20 or 21 applies in relation to any one of the buyers.

Commencement Information

I4 Sch. 5 para. 22 in force at 1.4.2018 by S.I. 2018/34, art. 3