Commentary on Sections Schedule 5 - Higher rates residential property transactions Part 6 - Interpretation
225.Paragraph 35 sets out the rules that apply in establishing whether a buyer holds a major interest in a dwelling located outside Wales. This will include any such dwelling that would be a dwelling for SDLT purposes in England. Outside England and Wales it will be any dwelling that meets equivalent ownership rules. Where it is a child that owns the major interest in a dwelling outside Wales then that child’s parent (and their spouse or civil partner) are deemed to own the interest (unless they are not living together).
226.Paragraph 35(7) dis-applies the effect of paragraph 35(5) in circumstances where an incapacitated child’s interest is acquired, held on trust, or disposed of, by a deputy appointed under the Mental Capacity Act 2005 (or a person acting in an equivalent capacity outside Wales and England), in relation to interests held outside Wales.
227.Paragraph 36 sets out what is a dwelling for the purposes of the Schedule. It includes a building or part of a building that is used or suitable for use as a dwelling or is in the process of being constructed or adapted for use as a dwelling. It will also include any dwelling to be constructed or adapted under contract for use as a dwelling.
228.Paragraph 37 makes it clear that a major interest for the purposes of this schedule does not include a lease granted for less than 7 years.