Land Transaction Tax - proposal to extend the higher residential rates three year exception and refund periods

The Association of Taxation Technicians (ATT) has submitted a response to the Welsh Government's consultation on proposals to extend the land transaction tax higher residential rates three year exception and refund periods in specified circumstances.

The proposed amendments and accompanying draft legislation would extend the current three year period for refunds of or exception from LTT Higher Residential Rates in 'relevant circumstances' - broadly where a transaction is either impeded by fire safety defects or prevented due to emergency restrictions.

In our response we generally support the proposals, but suggest that broader discretionary powers for the Welsh Revenue Authority should also be considered to accommodate other circumstances which lead to delays in property transactions. This would mirror powers available to HMRC for Stamp Duty Land Tax, but would need to be subject to appropriate review and appeals processes.