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

Relief for transactions entered into by persons exercising collective rights

10 (1) This paragraph applies where a chargeable transaction is entered into by a person or persons nominated or appointed by qualifying tenants of flats contained in premises in exercise of—

(a) a right under Part 1 of the Landlord and Tenant Act 1987 (c. 31) (right of first refusal), or

(b) a right under Chapter 1 of Part 1 of the Leasehold Reform, Housing and Urban Development Act 1993 (c. 28) (right to collective enfranchisement).

(2) The amount of tax chargeable is determined as follows.

• Step 1

  Determine the fraction of the chargeable consideration produced by dividing the total amount of that consideration by the number of qualifying flats contained in the premises.

• Step 2

  Determine the amount of tax chargeable under section 27 as if the chargeable consideration for the chargeable transaction were the fraction of the chargeable consideration calculated under Step 1.

• Step 3

  Multiply the amount determined at Step 2 by the number of qualifying flats contained in the premises.

(3) In this paragraph—

(a) “flat” and “qualifying tenant” have the same meaning as in the Chapter or the Part of the Act conferring the right being exercised;

(b) “qualifying flat” means a flat that is held by a qualifying tenant who is participating in the exercise of the right.