Changes over time for: Cross Heading: Adjustment of tax where rent determined on reconsideration date
Status:
Point in time view as at 01/04/2018.
Changes to legislation:
There are currently no known outstanding effects for the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017, Cross Heading: Adjustment of tax where rent determined on reconsideration date.
Changes to Legislation
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Adjustment of tax where rent determined on reconsideration dateE+W
12(1)Where, in the case of a land transaction relating to a lease—E+W
(a)section 19 or 20 (contingent, uncertain or unascertained consideration) applies to the land transaction by virtue of paragraph 10, and
(b)the reconsideration date is reached,
the buyer in the transaction must, on the reconsideration date, determine the rent paid or payable in respect of the first 5 years of the term of the lease.
(2)Paragraphs 13 and 14 make provision for the adjustment of tax payable in respect of a land transaction (and of any transaction linked to such a transaction) as a result of such a determination.
(3)For the purposes of this paragraph and paragraphs 13 and 14, the reconsideration date is —
(a)the date falling at the end of the fifth year of the term of the lease, or
(b)any earlier date on which the amount of rent payable in respect of the first 5 years of the term of the lease ceases to be uncertain.
(4)For the purposes of sub-paragraph (3)(b) and paragraph 13(2), the amount of rent payable ceases to be uncertain when—
(a)in the case of contingent rent, the contingency occurs or it becomes clear that it will not occur;
(b)in the case of uncertain or unascertained rent, the amount becomes ascertained.
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