The Land Transaction Tax (Modification of Relief for Acquisitions Involving Multiple Dwellings) (Wales) Regulations 2026

Welsh Statutory Instruments

2026 No. 40

LAND TRANSACTION TAX, WALES

The Land Transaction Tax (Modification of Relief for Acquisitions Involving Multiple Dwellings) (Wales) Regulations 2026

Made

11 February 2026

Coming into force

13 February 2026

The Welsh Ministers, in exercise of the powers conferred on them by section 78 of, and paragraph 6(7) of Schedule 13 to, the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017(1), make the following Regulations.

In accordance with the Senedd approval procedure applied by section 79(2) of that Act(2) a draft of this Welsh statutory instrument was laid before, and approved by resolution of, Senedd Cymru.

Title, coming into force and interpretation

1.—(1) The title of these Regulations is the Land Transaction Tax (Modification of Relief for Acquisitions Involving Multiple Dwellings) (Wales) Regulations 2026.

(2) These Regulations come into force on 13 February 2026.

(3) 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.

Modification of minimum amount payable where relief for acquisitions involving multiple dwellings is claimed

2.   In paragraph 6 of Schedule 13 to the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (determining the tax related to the consideration attributable to dwellings), in sub-paragraph (2) for “1%”, in both places it occurs, substitute “3%”.

Transitional provisions

3.—(1) The amendments made by these Regulations have effect in relation to a land transaction with an effective date on or after 13 February 2026.

(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 13 February 2026, or

(b) the transaction is effected in pursuance of a contract entered into before 13 February 2026 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 13 February 2026,

(b) the transaction is effected in consequence of the exercise on or after 13 February 2026 of any option, right of pre-emption or similar right, or

(c) on or after 13 February 2026 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 13 February 2026 or which meets the conditions in paragraph (2)(a) or (2)(b);

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

Mark Drakeford

Cabinet Secretary for Finance and Welsh Language, one of the Welsh Ministers

11 February 2026

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend Schedule 13 to the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017, which provides relief for acquisitions involving multiple dwellings.

Regulation 2 amends paragraph 6 of Schedule 13 to increase the minimum amount of tax that must be paid where relief under Schedule 13 is claimed from 1% of the consideration attributable to dwellings purchased to 3% of the consideration attributable to dwellings purchased.

Regulation 3 includes transitional provisions that provide that the Regulations do not affect land transactions effected in pursuance of a contract entered into or substantially performed before 13 February 2026, subject to certain conditions.

The Welsh Ministers’ Code of Practice on the carrying out of Regulatory Impact Assessments was considered in relation to these Regulations. As a result, a regulatory impact assessment has been prepared as to the likely costs and benefits of complying with these Regulations. A copy can be obtained from the Welsh Government, Cathays Park, Cardiff, CF10 3NQ.

(1)

2017 anaw 1.

(2)

See also section 37G of the Legislation (Wales) Act 2019 (anaw 4) for provision about the procedure that applies when an instrument combines subordinate legislation subject to different Senedd procedures, which applies to this instrument.