SCHEDULE 6LEASES
PART 5CALCULATION OF TAX CHARGEABLE
No tax chargeable in respect of rent: residential leases
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1
In the case of an acquisition of a residential lease, no tax is chargeable in respect of so much of the chargeable consideration as consists of rent.
2
The Welsh Ministers may by regulations amend this paragraph so as to substitute sub-paragraph (1) with a calculation of tax chargeable in respect of so much of the chargeable consideration as consists of rent in the case of an acquisition of a residential lease.
3
Regulations under sub-paragraph (2)—
a
must specify the method of calculation (including the method applicable to a case where the acquisition is one of a number of linked transactions each of which being the acquisition of a residential lease), and
b
may make such other supplemental, incidental or consequential modifications of any enactment (including this Act) as the Welsh Ministers consider necessary or expedient.
4
If regulations are made under sub-paragraph (2), the Welsh Ministers must by regulations specify the tax bands and percentage tax rates for each band applicable to the chargeable consideration which consists of rent.
5
Regulations under sub-paragraph (4) must specify—
a
a tax band for which the applicable tax rate is 0% (““the RL zero rate band””),
b
two or more tax bands above the RL zero rate band,
c
the tax rate for each band above the RL zero rate band so that the rate for each band is higher than the rate for the band below it, and
d
a date on which the tax bands and tax rates apply in relation to transactions with an effective date on or after that date.
6
Regulations under sub-paragraph (4) may specify—
a
different tax bands and tax rates in respect of different categories of acquisition of a residential lease;
b
different dates under sub-paragraph (5)(d) in respect of each specified tax band or tax rate.