C1SCHEDULE 5HIGHER RATES RESIDENTIAL PROPERTY TRANSACTIONS
C1PART 2BUYER IS AN INDIVIDUAL: SINGLE DWELLING TRANSACTIONS
Buyer has a major interest in other dwelling
I1C15
1
This paragraph applies in relation to a transaction if, at the end of the day that is the effective date of the transaction—
a
the buyer has a major interest in a dwelling other than the purchased dwelling, and
b
that interest has a market value of £40,000 or more.
2
But this paragraph does not apply if the interest described in sub-paragraph (1) is reversionary on a lease which—
a
is not held by a person connected with the buyer, and
b
has an unexpired term of more than 21 years.
3
Where the buyer is jointly entitled with one or more persons to the major interest referred to in sub-paragraph (1)(a), the reference in sub-paragraph (1)(b) to the market value of the interest is to the market value of the buyer's beneficial share in the interest as determined in accordance with sub-paragraph (4) or (5).
4
Where the buyer is beneficially entitled as a tenant in common, the market value of the buyer's beneficial share is equal to—
Figure 4 where—
MV is the market value of the major interest, and
PI is—
- a
the percentage of the interest to which the buyer is entitled, or
- b
where—
- i
the buyer and the buyer's spouse or civil partner are living together on the effective date of the transaction (for the meaning of ““living together””, see paragraph 25(3)), and
- ii
taken together the buyer and the buyer's spouse or civil partner are entitled as tenants in common,
- i
the percentage of the interest to which the buyer and the buyer's spouse or civil partner are so entitled.
5
Where the buyer is beneficially entitled as a joint tenant, the market value of the buyer's beneficial share is equal to—
Figure 5 where—
MV is the market value of the major interest, and
JT is the number of joint tenants entitled to the interest.
6
For the purpose of sub-paragraph (5), the buyer and the buyer's spouse or civil partner are to be treated as one joint tenant if—
a
they are living together on the effective date of the transaction (for the meaning of ““living together””, see paragraph 25(3)), and
b
they are beneficially entitled as joint tenants to the interest.
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