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

PART 2 RIGHT TO BUY RELIEF

Relief for right to buy transaction

2 (1) In the case of a right to buy transaction—

(a) section 19(1) (contingent consideration to be included in chargeable consideration on assumption that contingency will occur) does not apply, and

(b) any consideration that would be payable only if a contingency were to occur, or that is payable only because a contingency has occurred, does not count as chargeable consideration.

(2) A “right to buy transaction” means—

(a) the sale of a dwelling at a discount, or the grant of a lease of a dwelling at a discount, by a relevant public sector body, or

(b) the sale of a dwelling, or the grant of a lease of a dwelling, in pursuance of the preserved right to buy.

(3) The following are relevant public sector bodies for the purposes of this paragraph—

(a) a Minister of the Crown;

(b) the Welsh Ministers;

(c) a local housing authority within the meaning given by section 1 of the Housing Act 1985 (c. 68);

(d) a registered social landlord;

(e) a housing action trust established under Part 3 of the Housing Act 1988 (c. 50);

(f) a local policing body within the meaning of section 101(1) of the Police Act 1996 (c. 16);

(g) a person specified for the purposes of this paragraph by the Welsh Ministers by regulations.

(4) For the purposes of sub-paragraph (2)(b), the sale of a dwelling, or the grant of a lease of a dwelling, is made in pursuance of the preserved right to buy if—

(a) the seller is a person against whom the right to buy under Part 5 of the Housing Act 1985 (c. 68) is exercisable by virtue of section 171A of that Act,

(b) the buyer is the qualifying person for the purposes of the preserved right to buy, and

(c) the dwelling is the qualifying dwelling-house in relation to the buyer.

(5) A grant by the Welsh Ministers under section 20 or 21 of the Housing Act 1996 (c. 52) (purchase grants in respect of disposals at a discount by registered social landlords) does not count as part of the chargeable consideration for a right to buy transaction in relation to which the seller is a registered social landlord or private registered provider of social housing.

(6) In this paragraph—

• “qualifying dwelling-house” (“tŷ annedd” cymwys”) and “qualifying person” (“person cymwys”) have the meaning given by section 171B of the Housing Act 1985 (c. 68);

• “registered social landlord” (“landlord cymdeithasol cofrestredig”) means a body registered as a social landlord in a register maintained under section 1(1) of the Housing Act 1996 (c. 52).