Chwilio Deddfwriaeth

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

Newidiadau dros amser i: PART 5

 Help about opening options

Newidiadau i ddeddfwriaeth:

Ar hyn o bryd nid oes unrhyw effeithiau heb eu gweithredu yn hysbys ar gyfer y Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017, PART 5 . Help about Changes to Legislation

Close

Changes to Legislation

Revised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site.

PART 5 E+WCALCULATION OF TAX CHARGEABLE

Residential leases, non-residential leases and mixed leasesE+W

26E+WFor the purposes of this Part of this Schedule, a transaction is—

(a)an acquisition of a residential lease if—

(i)it is the acquisition of a lease or other chargeable interest relating to a lease, the main subject-matter of which consists entirely of residential property, or

(ii)where the acquisition is one of a number of linked transactions, the main subject-matter of each transaction consists entirely of residential property;

(b)an acquisition of a non-residential lease if—

(i)it is the acquisition of a lease or other chargeable interest relating to a lease, the main subject-matter of which consists entirely of land which is not residential property, or

(ii)where the acquisition is one of a number of linked transactions, the main subject-matter of each transaction consists entirely of land which is not residential property;

(c)an acquisition of a mixed lease if—

(i)it is the acquisition of a lease or other chargeable interest relating to a lease, the main subject-matter of which includes land which is not residential property, or

(ii)where the acquisition is one of a number of linked transactions, the main subject-matter of any of the transactions includes land which is not residential property.

Commencement Information

I1Sch. 6 para. 26 in force at 1.4.2018 by S.I. 2018/34, art. 3

No tax chargeable in respect of rent: residential leasesE+W

27(1)In the case of an acquisition of a residential lease, no tax is chargeable in respect of so much of the chargeable consideration as consists of rent.E+W

(2)The Welsh Ministers may by regulations amend this paragraph so as to substitute sub-paragraph (1) with a calculation of tax chargeable in respect of so much of the chargeable consideration as consists of rent in the case of an acquisition of a residential lease.

(3)Regulations under sub-paragraph (2)—

(a)must specify the method of calculation (including the method applicable to a case where the acquisition is one of a number of linked transactions each of which being the acquisition of a residential lease), and

(b)may make such other supplemental, incidental or consequential modifications of any enactment (including this Act) as the Welsh Ministers consider necessary or expedient.

(4)If regulations are made under sub-paragraph (2), the Welsh Ministers must by regulations specify the tax bands and percentage tax rates for each band applicable to the chargeable consideration which consists of rent.

(5)Regulations under sub-paragraph (4) must specify—

(a)a tax band for which the applicable tax rate is 0% (““the RL zero rate band””),

(b)two or more tax bands above the RL zero rate band,

(c)the tax rate for each band above the RL 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.

(6)Regulations under sub-paragraph (4) may specify—

(a)different tax bands and tax rates in respect of different categories of acquisition of a residential lease;

(b)different dates under sub-paragraph (5)(d) in respect of each specified tax band or tax rate.

Commencement Information

I2Sch. 6 para. 27 in force at 1.4.2018 by S.I. 2018/34, art. 3

Tax rates and bands: rent element of non-residential and mixed leasesE+W

28(1)The Welsh Ministers must by regulations specify the tax bands and the percentage tax rates for each band applicable to chargeable consideration which consists of rent in cases of the acquisition of a non-residential lease or mixed lease.E+W

(2)Regulations under sub-paragraph (1) must specify—

(a)a tax band for which the applicable tax rate is 0% (““the NRL zero rate band””),

(b)two or more tax bands above the NRL zero rate band,

(c)the tax rate for each band above the NRL 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.

(3)Regulations under sub-paragraph (1) may specify—

(a)different tax bands and tax rates in respect of different categories of acquisition of a non-residential lease or mixed lease;

(b)different dates under sub-paragraph (2)(d) in respect of each specified tax band or tax rate.

Commencement Information

I3Sch. 6 para. 28 in force at 18.10.2017 by S.I. 2017/953, art. 2(g)(i)

Calculation of tax chargeable in respect of rent: non-residential and mixed leasesE+W

29E+WIn the case of the acquisition of a non-residential lease or mixed lease, the amount of tax chargeable on so much of the chargeable consideration as consists of rent is to be calculated as follows (unless paragraph 30 (linked transactions) applies).

  • Step 1 Calculate the net present value (the ““NPV””) of the rent payable over the term of the lease (see paragraph 31).

  • Step 2 For each tax band applicable to the acquisition, multiply so much of the NPV as falls within the band by the tax rate for that band.

  • Step 3 Calculate the sum of the amounts reached under Step 2. The result is the amount of tax chargeable in respect of rent.

Commencement Information

I4Sch. 6 para. 29 in force at 1.4.2018 by S.I. 2018/34, art. 3

Calculation of tax chargeable in respect of rent: linked transactionsE+W

30E+WWhere the acquisition of a non-residential lease or mixed lease is one of a number of linked transactions for which the chargeable consideration consists of or includes rent, the amount of tax chargeable in respect of the rent is to be calculated as follows.

  • Step 1 Calculate the total of the net present values (the ““TNPV””) of the rent payable over the terms of all the linked leases (see paragraph 31).

  • Step 2 For each tax band applicable to the acquisition, multiply so much of the TNPV as falls within the band by the tax rate for that band.

  • Step 3 Calculate the sum of the amounts reached under Step 2. The result is the total tax chargeable in respect of rent.

  • Step 4 Divide the NPV of the rent payable over the term of the lease in question by the TNPV.

  • Step 5 Multiply the total tax chargeable in respect of rent by the fraction reached under Step 4. The result is the amount of tax chargeable in respect of rent for the lease in question.

Commencement Information

I5Sch. 6 para. 30 in force at 1.4.2018 by S.I. 2018/34, art. 3

Net present valueE+W

31E+WThe NPV of the rent payable over the term of a lease is calculated by applying the following formula—

Figure 8 where—

ri is the rent payable in respect of year i,

i is the first, second, third etc. year of the term of the lease,

n is the term of the lease, and

T is the temporal discount rate (see paragraph 32).

Commencement Information

I6Sch. 6 para. 31 in force at 1.4.2018 by S.I. 2018/34, art. 3

Temporal discount rateE+W

32E+WFor the purposes of paragraph 31 the ““temporal discount rate”” is 3.5% or such other rate as the Welsh Ministers may by regulations specify.

Commencement Information

I7Sch. 6 para. 32 in force at 1.4.2018 by S.I. 2018/34, art. 3

Tax chargeable in respect of consideration other than rent: generalE+W

33(1)Where in the case of an acquisition of a lease there is chargeable consideration other than rent, the provisions of this Act apply in relation to that consideration as in relation to other chargeable consideration (but see paragraphs 34 and 35).E+W

(2)Tax chargeable under this Part of this Schedule in respect of rent is in addition to any tax chargeable under any provision of this Act in respect of consideration other than rent.

Commencement Information

I8Sch. 6 para. 33 in force at 1.4.2018 by S.I. 2018/34, art. 3

Tax chargeable in respect of consideration other than rent: no zero rate band for non-residential leasesE+W

34(1)This paragraph applies in the case of an acquisition of a non-residential lease where—E+W

(a)there is chargeable consideration other than rent, and

(b)section 27 (amount of tax chargeable: transactions which are not linked) or 28 (amount of tax chargeable: linked transactions) applies to the acquisition.

(2)If the relevant rent is at least the specified amount, the zero rate band does not apply in relation to the consideration other than rent and, accordingly, any case which would have fallen within that band is treated as falling within the next tax band.

Commencement Information

I9Sch. 6 para. 34 in force at 1.4.2018 by S.I. 2018/34, art. 3

Tax chargeable in respect of consideration other than rent: mixed leasesE+W

35(1)This paragraph applies in the case of an acquisition of a mixed lease where—E+W

(a)there is chargeable consideration other than rent, and

(b)the relevant rent attributable, on a just and reasonable apportionment, to the land which is not residential property is at least the specified amount.

(2)For the purpose of determining the amount of tax chargeable in relation to the consideration other than rent, the transaction (or where it is one of a number of linked transactions, that set of transactions) is treated as if it were two separate but linked transactions (or two separate sets of linked transactions which are themselves linked) namely—

(a)one whose subject-matter consists of all the land that is residential property (and section 28 (amount of tax chargeable: linked transactions) applies accordingly), and

(b)one whose subject-matter consists of all the land that is not residential property (and that section as modified by paragraph 34 applies accordingly).

(3)For that purpose, the chargeable consideration attributable to each of those separate transactions (or sets of linked transactions) is the chargeable consideration so attributable on a just and reasonable basis.

Commencement Information

I10Sch. 6 para. 35 in force at 1.4.2018 by S.I. 2018/34, art. 3

Relevant rentE+W

36(1)In paragraphs 34 and 35—E+W

(a)"the relevant rent”” means—

(i)the annual rent in relation to the transaction in question, or

(ii)if that transaction is one of a number of linked transactions for which the chargeable consideration consists of or includes rent, the total of the annual rents in relation to all of those transactions;

(b)"the specified amount”” means an amount of relevant rent specified by the Welsh Ministers by regulations.

(2)In sub-paragraph (1)(a) “"the annual rent”” means—

(a)the average annual rent over the term of the lease, or

(b)if—

(i)different amounts of rent are payable for different parts of the term, and

(ii)those amounts (or any of them) are ascertainable at the effective date of the transaction,

the average annual rent over the term for which the highest ascertainable rent is payable.

Commencement Information

I11Sch. 6 para. 36(1)(a)(2) in force at 1.4.2018 by S.I. 2018/34, art. 3

I12Sch. 6 para. 36(1)(b) in force at 18.10.2017 for specified purposes by S.I. 2017/953, art. 2(g)(ii)

I13Sch. 6 para. 36(1)(b) in force at 1.4.2018 in so far as not already in force by S.I. 2018/34, art. 3

Power to amend or repeal paragraphs 34 to 36E+W

37E+WThe Welsh Ministers may by regulations amend or repeal paragraphs 34 to 36.

Commencement Information

I14Sch. 6 para. 37 in force at 1.4.2018 by S.I. 2018/34, art. 3

Yn ôl i’r brig

Options/Help

Print Options

You have chosen to open The Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Act as a PDF

The Whole Act you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open y Ddeddf Gyfan

Y Ddeddf Gyfan you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open Schedules only

Y Rhestrau you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

Close

Mae deddfwriaeth ar gael mewn fersiynau gwahanol:

Y Diweddaraf sydd Ar Gael (diwygiedig):Y fersiwn ddiweddaraf sydd ar gael o’r ddeddfwriaeth yn cynnwys newidiadau a wnaed gan ddeddfwriaeth ddilynol ac wedi eu gweithredu gan ein tîm golygyddol. Gellir gweld y newidiadau nad ydym wedi eu gweithredu i’r testun eto yn yr ardal ‘Newidiadau i Ddeddfwriaeth’. Dim ond yn Saesneg y mae’r fersiwn ddiwygiedig ar gael ar hyn o bryd.

Gwreiddiol (Fel y’i Deddfwyd neu y’i Gwnaed) - Saesneg: Mae'r wreiddiol Saesneg fersiwn y ddeddfwriaeth fel ag yr oedd pan gafodd ei deddfu neu eu gwneud. Ni wnaed unrhyw newidiadau i’r testun.

Gwreiddiol (Fel y’i Deddfwyd neu y’i Gwnaed)-Cymraeg:Y fersiwn Gymraeg wreiddiol o’r ddeddfwriaeth fel yr oedd yn sefyll pan gafodd ei deddfu neu ei gwneud. Ni wnaed unrhyw newidiadau i’r testun.

Close

Gweler y wybodaeth ychwanegol ochr yn ochr â’r cynnwys

Rhychwant ddaearyddol: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.

Dangos Llinell Amser Newidiadau: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.

Close

Dewisiadau Agor

Dewisiadau gwahanol i agor deddfwriaeth er mwyn gweld rhagor o gynnwys ar y sgrin ar yr un pryd

Close

Nodiadau Esboniadol

Text created by the Welsh Government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes accompany all Acts of the National Assembly for Wales.

Close

Rhagor o Adnoddau

Gallwch wneud defnydd o ddogfennau atodol hanfodol a gwybodaeth ar gyfer yr eitem ddeddfwriaeth o’r tab hwn. Yn ddibynnol ar yr eitem ddeddfwriaeth sydd i’w gweld, gallai hyn gynnwys:

  • y PDF print gwreiddiol y fel deddfwyd fersiwn a ddefnyddiwyd am y copi print
  • rhestr o newidiadau a wnaed gan a/neu yn effeithio ar yr eitem hon o ddeddfwriaeth
  • manylion rhoi grym a newid cyffredinol
  • pob fformat o’r holl ddogfennau cysylltiedig
  • slipiau cywiro
  • dolenni i ddeddfwriaeth gysylltiedig ac adnoddau gwybodaeth eraill
Close

Llinell Amser Newidiadau

This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.

Close

Rhagor o Adnoddau

Defnyddiwch y ddewislen hon i agor dogfennau hanfodol sy’n cyd-fynd â’r ddeddfwriaeth a gwybodaeth am yr eitem hon o ddeddfwriaeth. Gan ddibynnu ar yr eitem o ddeddfwriaeth sy’n cael ei gweld gall hyn gynnwys:

  • y PDF print gwreiddiol y fel deddfwyd fersiwn a ddefnyddiwyd am y copi print
  • slipiau cywiro

liciwch ‘Gweld Mwy’ neu ddewis ‘Rhagor o Adnoddau’ am wybodaeth ychwanegol gan gynnwys

  • rhestr o newidiadau a wnaed gan a/neu yn effeithio ar yr eitem hon o ddeddfwriaeth
  • manylion rhoi grym a newid cyffredinol
  • pob fformat o’r holl ddogfennau cysylltiedig
  • dolenni i ddeddfwriaeth gysylltiedig ac adnoddau gwybodaeth eraill