Background and Purpose
These Regulations amend Schedule 13 to the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017, which provides a relief from land transaction tax (“LTT”) for acquisitions involving multiple dwellings (known as multiple-dwellings relief or “MDR”).
Regulation 2 amends paragraph 6 of Schedule 13 to increase the minimum amount of LTT that must be paid where MDR is claimed from 1% of the consideration attributable to dwellings purchased to 3% of that consideration.
Regulation 3 includes transitional provisions that provide that the Regulations do not affect land transactions effected in pursuance of a contract entered into or substantially performed before 13 February 2026, subject to certain conditions.
Procedure
Senedd approval procedure.
The Welsh Ministers have laid a draft of the Regulations before the Senedd. The Welsh Ministers cannot make the Regulations unless the Senedd approves the draft Regulations.
Technical Scrutiny
No points are identified for reporting under Standing Order 21.2 in respect of this instrument.
Merits Scrutiny
The following point is identified for reporting under Standing Order 21.3 in respect of this instrument.
1. Standing Order 21.3(i) – that it imposes a charge on the Welsh Consolidated Fund or contains provisions requiring payments to be made to that Fund or any part of the government or to any local or public authority in consideration of any licence or consent or of any services to be rendered, or prescribes the amount of any such charge or payment.
Section 25 of the Tax Collection and Management (Wales) Act 2016 provides that the Welsh Revenue Authority must pay amounts collected in the exercise of its functions relating to devolved taxes, which includes the collection of LTT, into the Welsh Consolidated Fund.
These Regulations modify the application of a relief (MDR) from LTT as described above.
Welsh Government response
A Welsh Government response is not required.
Legal Advisers
Legislation, Justice and Constitution Committee
2 February 2026