Old property contracts: when SDLT applied after LTT began
Historic SDLT and LTT transition
Some later transactions linked to contracts made by 17 December 2014 remained within SDLT after LTT began in Wales.
- The first contract must not have been substantially performed.
- The later step must have an effective date on or after 1 April 2018.
- A section 16(6) exclusion changes the result to LTT.
Scroll down for the full analysis.
Read the original guidance here:
Old property contracts: when SDLT applied after LTT began
This concerns a narrow historic stamp duty rule. Although Land Transaction Tax started in Wales on 1 April 2018, some old property contracts could still fall under SDLT if the later statutory conditions were met. The dates and the type of contract matter.
What this rule is about
This rule addresses an old contract in which another person later becomes involved through certain obligations or later contracts described in Finance Act 2003 section 44A. That is the focus.
The key point is simple: the start of LTT in Wales did not automatically place every later step under an old arrangement within LTT.
What the official source says
Welsh Government guidance says the later transaction is subject to SDLT if all the stated conditions are met and no exclusion applies.
- The first contract was made on or before 17 December 2014.
- That contract was not substantially performed.
- The later obligation or contract is one covered by section 44A.
- Its effective date is on or after 1 April 2018.
- None of the exclusions in Wales Act 2014 section 16(6) applies.
If an exclusion does apply, the guidance says LTT applies instead.
What this means in practice
The completion date alone cannot determine the tax. The history of the first contract may decide whether SDLT or LTT applies.
- Keep the first signed contract.
- Check when it was made.
- Check whether anything had already happened that counted as substantial performance.
- Identify the effective date of each later step.
How to analyse it
Follow the facts in date order. A transaction after 1 April 2018 is not necessarily an LTT transaction.
- Identify the original parties and any later parties.
- Check whether the arrangement falls within section 44A.
- Confirm the date of the first contract.
- Check the section 16(6) exclusions before choosing the tax.
Example
Ali and Beth entered into a first contract on 17 December 2014. It was not substantially performed. A later contract covered by section 44A has an effective date of 1 April 2018. If no section 16(6) exclusion applies, the guidance says SDLT applies. If an exclusion applies, LTT applies.
Why this can be difficult in practice
Old documents and exact events determine the outcome under this rule. A missing contract, or uncertainty over substantial performance, can change the answer.
- People may focus only on the completion date.
- The first contract may have been varied or replaced.
- The section 16(6) exclusions need checking against the facts.
Key takeaways
- This is a historic transitional rule.
- An old contract can keep a later step within SDLT.
- An applicable exclusion changes the result to LTT.
Technical analysis
For advisers, and for anyone who wants to check the law behind this page. You do not need this section to understand the guidance above.
Legislation
- FA 2003 section 44A — later obligation under a transfer rights arrangement; contract between the intermediate buyer and final buyer
- an Act of 2014 we do not have an identifier for section 16 — exclusions from the SDLT transitional treatment (no link: an Act of 2014 we do not have an identifier for)
Official guidance
The pages below are the Welsh Revenue Authority’s guidance. Guidance is not law. It sets out how the Welsh Revenue Authority reads the legislation, and it is not binding on you, on a tribunal or on a court. Where guidance and the legislation differ, the legislation wins. the Welsh Revenue Authority can also change or withdraw guidance, and it may not cover your facts.
- Welsh Government, Transitional guidance on the introduction of Land Transaction Tax, section 6.3
Where this is not settled
- The supplied guidance does not explain how to decide whether a contract was substantially performed.
- The supplied guidance does not set out the exclusions in Wales Act 2014 s.16(6).
Evidence you would need
This kind of case is decided on the facts of the individual property. These are the records that usually settle it, and the ones an adviser would ask you for.
- The first contract and its date
- Evidence of whether the first contract was substantially performed
- The documents creating the later obligation or contract
- The effective date of the later transaction
- Whether a Wales Act 2014 s.16(6) exclusion applies
Explore this with an AI
Readers often want to test their own situation. Copy the prompt below into ChatGPT, Claude or Gemini. It hands the model the actual legislation for this page rather than letting it answer from memory, and tells it to be explicit about what is uncertain. What comes back is information, not advice – check it against the links above.
I am researching Land Transaction Tax (LTT), the tax on property in Wales. It replaced Stamp Duty Land Tax in Wales on 1 April 2018, and SDLT does not apply in Wales. MY QUESTION Old property contracts: when SDLT applied after LTT began [Replace this with your own situation: what you are buying, the price, the dates, who the buyer is, and what you plan to do with the property.] THE LAW THIS TURNS ON - FA 2003 section 44A - later obligation under a transfer rights arrangement https://www.legislation.gov.uk/ukpga/2003/14/section/44A/2025-11-17 - FA 2003 section 44A - contract between the intermediate buyer and final buyer https://www.legislation.gov.uk/ukpga/2003/14/section/44A/2025-11-17 - an Act of 2014 we do not have an identifier for section 16 - exclusions from the SDLT transitional treatment Guidance page from the Welsh Revenue Authority on this topic (guidance, not law): https://www.gov.wales/transitional-guidance-introduction-of-land-transaction-tax HOW I WANT YOU TO ANSWER 1. Work from the legislation above. Read it before answering. Guidance from the Welsh Revenue Authority is its view of the law, not the law, and does not bind a tribunal or a court. 2. Tell me what the rule actually requires, in plain English. 3. Tell me which facts decide the answer, and which facts would change it. 4. Tell me what evidence I would need to support the position. 5. Be explicit about anything unsettled or fact-sensitive. Do not guess. 6. Your training data has a cutoff and SDLT rates and reliefs change at fiscal events. Say so if you are not sure the law is current. POINTS ALREADY KNOWN TO BE UNCERTAIN ON THIS TOPIC - The supplied guidance does not explain how to decide whether a contract was substantially performed. - The supplied guidance does not set out the exclusions in Wales Act 2014 s.16(6). Do not give me a conclusion you cannot support from the provisions above.
Legislation links show the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 as it stood on 2025-11-17. The law may have changed since, and the rules that apply are those in force on the date of your transaction. The official guidance this page is based on is here.
This page was last updated on 3 September 2026
Useful article? You may find it helpful to read the original guidance here: Old property contracts: when SDLT applied after LTT began
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