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

27 (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. E+W

(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.

Commencement Information

I1 Sch. 6 para. 27 in force at 1.4.2018 by S.I. 2018/34, art. 3