Land Transaction Tax return for a purchase in Wales (LTTA 2017, s.44)
Seren Evans, a solicitor in Chester, England, acts for Dafydd Lloyd on his purchase of a freehold shop in Cardiff for £600,000. Completion takes place on 10 July 2026. Dafydd did not take possession before completion. Seren has previously handled only purchases of land in England.
Which of the following best describes what must be done after completion to deal with tax on the purchase?
Choose one answer to see the reasoning.
Worked answer
Correct answer E: Dafydd must make a Land Transaction Tax return, with a self-assessment, to the Welsh Revenue Authority within 30 days beginning with the day after completion.
THE RULE TO REMEMBER
For land in Wales the buyer must make an LTT return, with self-assessment, to the Welsh Revenue Authority within 30 days beginning with the day after the effective date.
Land Transaction Tax return for a purchase in Wales (LTTA 2017, s.44)
Since 1 April 2018, transactions in land in Wales are subject to Land Transaction Tax rather than SDLT. The tax depends on where the land is, not where the solicitor or the buyer is based. Section 44 of the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 requires the buyer in a notifiable land transaction to make a return to the Welsh Revenue Authority (WRA). The return must be made before the end of the period of 30 days beginning with the day after the effective date, and, for a chargeable transaction, must include a self-assessment of the tax. The shop is in Cardiff and completion (the effective date here) is 10 July 2026. Dafydd's LTT return must therefore go to the WRA within 30 days beginning with 11 July 2026. LTT has its own rates, set by the Welsh Government. Seren must not apply the 14-day SDLT deadline or the SDLT rates.
Why A is wrong: SDLT does not apply to land in Wales; LTT applies instead.
Why B is wrong: The LTT return goes to the WRA, but the deadline is 30 days beginning with the day after the effective date, not 14 days.
Why C is wrong: LTT is administered by the Welsh Revenue Authority, not HMRC.
Why D is wrong: Which tax applies depends on where the land is, not where the solicitor practises; only an LTT return is needed.
A little more practice done.
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