29(1)Where—E+W
(a)the main subject-matter of a land transaction consists of an interest other than a major interest in a dwelling, and
(b)sub-paragraph (2) or (3) applies in relation to the transaction,
then, for the avoidance of doubt, the effect of paragraph 28 of this Schedule or, as the case may be, paragraph 3(1) of Schedule 8, is that the main subject-matter of the transaction is to be treated for the purposes of this Schedule as consisting of a major interest in a dwelling.
(2)This sub-paragraph applies in relation to a transaction where—
(a)a major interest in the dwelling is held on a bare trust for a beneficiary (““B””),
(b)there is a disposal of the whole or part of B's interest in the dwelling,
(c)immediately before the effective date of the transaction—
(i)the major interest is, by virtue of paragraph 3(1) of Schedule 8, treated as if it were vested in B, or
(ii)B is, by virtue of paragraph 28, treated as holding the major interest in the dwelling, and
(d)immediately after the effective date of the transaction—
(i)the major interest is, by virtue of paragraph 3(1) of Schedule 8, treated as if it were vested in the buyer, or
(ii)the buyer is, by virtue of paragraph 28, treated as holding the major interest.
(3)This sub-paragraph applies in relation to a transaction where—
(a)a person (““B””) is a beneficiary under a settlement where a major interest in the dwelling forms part of the trust property,
(b)under the terms of the settlement B is entitled to—
(i)occupy the dwelling for life, or
(ii)income earned in respect of the dwelling,
(c)there is a disposal of the whole or part of B's interest in the dwelling,
(d)immediately before the effective date of the transaction B is, by virtue of paragraph 28, treated as holding the major interest in the dwelling, and
(e)immediately after the effective date of the transaction the buyer is, by virtue of that paragraph, treated as holding the major interest.
(4)In determining whether sub-paragraph (2) or (3) applies to a transaction, ignore paragraphs 30 and 35(5).
Modifications etc. (not altering text)
C1Sch. 5 applied (with modifications) (1.4.2018) by The Land Transaction Tax (Transitional Provisions) (Wales) Regulations 2018 (S.I. 2018/126), regs. 1(2), 12
Commencement Information
I1Sch. 5 para. 29 in force at 1.4.2018 by S.I. 2018/34, art. 3