PART 3CALCULATION OF TAX AND RELIEFS
Calculation of tax
24Regulations specifying tax bands and tax rates
I1I21
The Welsh Ministers must by regulations specify the tax bands and percentage tax rates for each band applicable in the case of the following types of chargeable transactions—
a
residential property transactions,
b
higher rates residential property transactions, and
c
non-residential property transactions.
I32
In this Act, “"tax band”” means a lower and, if specified, upper amount of money from or, as the case may be, between which a specified percentage tax rate applies.
I33
Regulations under subsection (1)(a) and (c) must specify, in the case of each type of transaction—
a
a tax band for which the applicable tax rate is 0% (““the zero rate band””),
b
two or more tax bands above the zero rate band,
c
the tax rate for each band above the 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.
I34
Regulations under subsection (1)(b) must specify—
a
three or more tax bands,
b
an applicable tax rate for each band which—
i
must, in respect of any higher rates residential property transaction, be higher than the highest rate that would be applicable to any amount within that band were that transaction a residential property transaction, and
ii
except in the case of the lowest band, is higher than the rate applicable to the band below it, and
c
a date on which the tax bands and tax rates apply in relation to transactions with an effective date on or after that date.
I35
Regulations under subsection (1) may specify—
a
different tax bands and tax rates in respect of different categories of each type of chargeable transaction (including by reference to different descriptions of buyer);
b
different dates under subsection (3)(d) or (4)(c) in respect of each specified tax band or tax rate.
I36
A chargeable transaction is a residential property transaction if—
a
the main subject-matter of the transaction consists entirely of an interest in land that is residential property, or
b
where the transaction is one of a number of linked transactions, the main subject-matter of each transaction consists entirely of such an interest.
I37
But if Schedule 5 applies to a chargeable transaction it is a higher rates residential property transaction.
I38
A chargeable transaction is a non-residential property transaction if—
a
the main subject-matter of the transaction consists of or includes an interest in land that is not residential property, or
b
where the transaction is one of a number of linked transactions, the main subject-matter of any of the transactions consists of or includes such an interest.
I39
Tax bands and tax rates specified in regulations under subsection (1) do not apply in relation to a chargeable transaction in so far as the chargeable consideration for the transaction is rent (for provision about the tax bands and tax rates applicable to chargeable consideration which is rent see paragraphs 27 and 28 of Schedule 6).
I310
Schedule 5 makes provision about higher rates residential property transactions.
I1I211
The Welsh Ministers may by regulations amend Schedule 5.