Part 4 Withdrawal of Reconstruction or Acquisition Relief
Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (2017 anaw 1) | Legislation

Part 4 Withdrawal of Reconstruction or Acquisition Relief

Interpretation

4

In this Part and in Part 5 of this Schedule, a transaction—

(a)     that is relieved from tax by virtue of reconstruction relief, or

(b)     on which tax is chargeable in accordance with paragraph 3 (acquisition relief),

is referred to as a “relieved transaction”.

Withdrawal of reconstruction or acquisition relief

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(1)     Where sub-paragraph (2) applies, reconstruction or acquisition relief in relation to a relieved transaction, or an appropriate proportion of it, is withdrawn and tax is chargeable in accordance with this paragraph.

(2)     This sub-paragraph applies where—

(a)     control of the acquiring company changes—

(i)     before the end of the period of 3 years beginning with the effective date of the transaction, or

(ii)     in pursuance of, or in connection with, arrangements made before the end of that period, and

(b)     at the time control of the acquiring company changes (“the relevant time”), it or a relevant associated company holds a chargeable interest—

(i)     that was acquired by the acquiring company under the relieved transaction, or

(ii)     that is derived from an interest so acquired,

and that has not subsequently been acquired

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