The Land Transaction Tax (Tax Bands and Tax Rates) (Wales) (Amendment) Regulations 2020

• Citation: S.I. 2020/1618 (W.)
• Sections: 6

Section 1 Title and commencement

The title of these Regulations is the Land Transaction Tax (Tax Bands and Tax Rates) (Wales) (Amendment) Regulations 2020 and they come into force on 22 nd December 2020.

Section 2 Interpretation

In these Regulations,—

(a) “the 2018 Regulations” means the Land Transaction Tax (Tax Bands and Tax Rates) (Wales) Regulations 2018 .

(b) Words and expressions used in these Regulations have the same meaning as they have in the Land Transaction Tax and Anti-Avoidance of Devolved Taxes (Wales) Act 2017.

Section 3 Application

Subject to regulation 4, these Regulations have effect in relation to the following land transactions with an effective date on or after 22 December 2020—

(a) higher rates residential property transactions to which Table 2 of the Schedule to the 2018 Regulations applies;

(b) non-residential property transactions to which Table 3 of the Schedule to the 2018 Regulations applies; and

(c) chargeable consideration which consists of rent to which Table 4 of the Schedule to the 2018 Regulations applies.

Section 4 Application

These Regulations do not have effect in relation to any transaction specified in regulation 3(a) (higher rates residential property transactions) which is—

(a) effected in pursuance of a contract entered into and substantially performed before 22 December 2020; or

(b) effected in pursuance of a contract entered into before 22 December 2020 and not excluded by regulation 5.

Section 5 Application

A transaction is excluded by this regulation if it is a transaction specified in regulation 3(a) which is effected in pursuance of a contract entered into before 22 December 2020 and where—

(a) there is any variation of the contract, or assignment of rights under the contract, on or after 22 December 2020;

(b) the transaction is effected in consequence of the exercise on or after 22 December 2020 of any option, right of pre-emption or similar right; or

(c) on or after 22 December 2020 there is an assignment, subsale or other transaction relating to the whole or part of the subject-matter of the contract as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance.

Section 6 Amendment of the Land Transaction Tax (Tax Bands and Tax Rates) (Wales) Regulations 2018

(1) The Schedule to the 2018 Regulations is amended as follows—

(2) For Table 2 substitute—

Table 2: Higher rates residential property transactions

(3) For Table 3 substitute—

Table 3: Non-residential property transactions

(4) For table 4 substitute—

Table 4: Chargeable consideration which consists of rent