LTT transition: when the old SDLT contract-transfer rule applies
In brief
The Welsh transition guidance identifies when an old SDLT rule may apply after a contract is passed to another person before completion.
- Check the timing of both agreements.
- Check who could require the transfer.
- Keep evidence of payments and possession.
Scroll down for the full analysis.
Read the original guidance here:
LTT transition: when the old SDLT contract-transfer rule applies
LTT transition: when the old SDLT contract-transfer rule applies
This LTT transition guidance addresses a narrow problem: someone passes a property contract to another person before completion. It refers to an old SDLT, or stamp duty, rule instead of the usual LTT rules.
What this rule is about
After agreeing to buy land, you may make a later deal that allows someone else to require the seller to transfer it to them. An assignment of rights, a sub-sale, or another separate arrangement can produce this situation.
Timing matters. Before the original contract completes or is substantially performed, the later deal must take place.
What the official source says
According to the official transition guidance, the old SDLT provisions apply where the original contract was due to finish with a transfer and a later agreement gives another person the right to call for that transfer.
- The original contract must be due to complete by transfer.
- The later agreement must come first.
- It must give another person the right to require the transfer.
- The right may cover all or only part of the property.
What this means in practice
Calling a deal an assignment does not, by itself, settle the tax position. Instead, the important question is what the later agreement actually allows the new person to require.
- Keep both signed agreements.
- Record when each person paid money or took possession.
- Check whether the transfer covers all or part of the land.
How to analyse it
Begin with the sequence of events. Only after that should you consider the labels used by the parties.
- Identify the original buyer and original contract.
- Check that the planned completion was a transfer.
- Find the date of the later agreement.
- Check whether the original deal had already completed or been substantially performed.
- Read whether the new person could require the transfer.
Example
Amir signs a contract to buy a plot. Before completion, he makes a separate deal with Beth that lets Beth require the seller to transfer the plot to her. The guidance says this is the type of arrangement to which the old SDLT provisions may apply.
Why this can be difficult in practice
Here is where people get it wrong: an informal change of plan is not enough on its own. Both the documents and the events before the later deal matter.
- A payment or possession may mean the original contract was already substantially performed.
- A later deal may concern only part of the land.
- The source does not give the relevant transition dates in this extract.
Key takeaways
- This is historic LTT transition guidance about old SDLT rules.
- The later deal must give another person a right to require transfer.
- Timing and the written agreements are central.
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 45 — contracts transferred before completion or substantial performance
- FA 2003 Schedule 2A para 2 — when pre-completion transaction rules apply
- FA 2003 Schedule 2A para 3 — what counts as a pre-completion transaction
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.
Where this is not settled
- The supplied extract does not state which transaction dates bring this transitional rule into play.
- Whether an agreement gives a new person the right to require the transfer depends on its terms and what happened before it.
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 original contract and its completion terms
- The later agreement, assignment or sub-sale documents
- Evidence of possession, payments and the dates they occurred
- The date each agreement was made and the transfer completed
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 LTT transition: when the old SDLT contract-transfer rule applies [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 45 - contracts transferred before completion or substantial performance https://www.legislation.gov.uk/ukpga/2003/14/section/45/2025-11-17 - FA 2003 Schedule 2A para 2 - when pre-completion transaction rules apply https://www.legislation.gov.uk/ukpga/2003/14/schedule/2A/paragraph/2/2025-11-17 - FA 2003 Schedule 2A para 3 - what counts as a pre-completion transaction https://www.legislation.gov.uk/ukpga/2003/14/schedule/2A/paragraph/3/2025-11-17 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 extract does not state which transaction dates bring this transitional rule into play. - Whether an agreement gives a new person the right to require the transfer depends on its terms and what happened before it. 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: LTT transition: when the old SDLT contract-transfer rule applies
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