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Paragraph 21 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 two or more dwellings (““the purchased dwellings””), and

(c)

at least one of the purchased dwellings is a dwelling to which sub-paragraph (2) applies.

(2)

This sub-paragraph applies to a purchased dwelling if the amount of the chargeable consideration for the transaction which is attributable on a just and reasonable basis to the purchased dwelling is £40,000 or more.

(3)

But sub-paragraph (2) does not apply to a purchased dwelling 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 (4).

(4)

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.

(5)

A transaction within section 72(9) is not a higher rates residential property transaction save where Schedule 13 applies (see in particular paragraph 6(6) of that Schedule).

F1(5A)

This paragraph applies subject to paragraph 21A (subsequent disposal to local authorities exception).

Annotations

Textual amendments

F1

Sch. 5 para. 21(5A) 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(4)

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. 21 in force at 1.4.2018 by S.I. 2018/34, art. 3