The Land Transaction Tax (Modification of Relief for Acquisitions Involving Multiple Dwellings) (Wales) Regulations 2025

• Citation: S.I. 2025/119 (W.)
• Sections: 4

Section 1 Title and coming into force

(1) The title of these Regulations is the Land Transaction Tax (Modification of Relief for Acquisitions Involving Multiple Dwellings) (Wales) Regulations 2025.

(2) These Regulations come into force on 7 February 2025.

Section 2 Interpretation

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 Modification of relief for acquisitions involving multiple dwellings

In Schedule 13 to the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017, after paragraph 7 insert—

Circumstances in which subsidiary dwellings do not count as separate dwellings

(7A)

(1) Sub-paragraph (3) applies in relation to a chargeable transaction—

(a) where—

(i) the buyer is an individual, and

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

(b) where only one of the purchased dwellings is a qualifying dwelling, and

(c) to which paragraph 15 of Schedule 5 does not apply.

(2) But sub-paragraph (3) does not apply in relation to a chargeable transaction that—

(a) is within sub-paragraph (1), and

(b) to which paragraph 18 of Schedule 5 applies (intermediate transaction treated as a higher rates residential property transaction).

(3) For the purposes of this Schedule, the interests in the qualifying dwelling mentioned in sub-paragraph (1)(b) and a purchased dwelling (or more than one) that is subsidiary to it are treated as if they were an interest in a single dwelling.

(4) For the purposes of this paragraph, a purchased dwelling (“dwelling A”) is subsidiary to a qualifying dwelling (“dwelling B”) if dwelling A would be subsidiary to dwelling B for the purposes of Schedule 5 (see paragraph 14 of that Schedule).

(5) In this paragraph, “ qualifying dwelling ” means a dwelling that is a qualifying dwelling for the purposes of Part 3 of Schedule 5 (see paragraph 13 of that Schedule).

Section 4 Transitional provisions

(1) The amendments made by these Regulations have effect in relation to a land transaction with an effective date on or after 7 February 2025.

(2) But the amendments made by these Regulations do not have effect in relation to a land transaction if—

(a) the transaction is effected in pursuance of a contract entered into and substantially performed before 7 February 2025, or

(b) the transaction is effected in pursuance of a contract entered into before 7 February 2025 and is not excluded by paragraph (3).

(3) A land transaction is excluded if—

(a) there is any variation of the contract, or assignment of rights under the contract, on or after 7 February 2025,

(b) the transaction is effected in consequence of the exercise on or after 7 February 2025 of any option, right of pre-emption or similar right, or

(c) on or after 7 February 2025 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 buyer under the contract becomes entitled to call for a transfer.

(4) If—

(a) a post-commencement land transaction is linked to a pre-commencement land transaction, and

(b) the pre-commencement land transaction is a relevant transaction for the purposes of paragraph 3 of Schedule 13 to the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017,

the amendments made by these Regulations do not have effect in relation to the post-commencement land transaction.

(5) In paragraph (4)—

(a) “ pre-commencement land transaction ” means a land transaction the effective date of which is before 7 February 2025 or which meets the conditions in paragraph (2)(a) or (2)(b);

(b) “ post-commencement land transaction ” means all other land transactions.