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Paragraph 20 I1C1

(1)

A chargeable transaction is a higher rates residential property transaction if—

(a)

the buyer is not an individual,

(b)

the main subject-matter of the transaction consists of a major interest in a dwelling (““the purchased dwelling””), and

(c)

the chargeable consideration for the dwelling is £40,000 or more.

F1(1A)

Sub-paragraph (1) applies subject to the exceptions in—

(a)

sub-paragraph (2), and

(b)

paragraph 20A (subsequent disposal to local authorities exception).

(2)

F2... A transaction is not a higher rates residential property transaction under sub-paragraph (1) if at the end of the day that is the effective date of the transaction—

(a)

the purchased dwelling is subject to a lease,

(b)

the main subject-matter of the transaction is reversionary on that lease, and

(c)

the lease meets the conditions set out in sub-paragraph (3).

(3)

The conditions are that—

(a)

the lease is not held by a person connected with the buyer, and

(b)

the lease has an unexpired term of more than 21 years.

Annotations

Textual amendments

F1

Sch. 5 para. 20(1A) inserted (13.2.2026) by The Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (Amendments to Schedule 5) Regulations 2026 (W.S.I. 2026/42), regs. 1(2), 4(2)(a)

F2

Word in Sch. 5 para. 20(2) omitted (13.2.2026) by virtue of The Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (Amendments to Schedule 5) Regulations 2026 (W.S.I. 2026/42), regs. 1(2), 4(2)(b)

Modifications

C1

Sch. 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

I1

Sch. 5 para. 20 in force at 1.4.2018 by S.I. 2018/34, art. 3