Land Transaction Tax return guidance - Tax calculation

If you disagree with the calculation generated by the system or wish to make an election and choose to enter a different amount, you’ll be asked further questions.

In this case, select the appropriate reason:

• Partnership transaction where tax is calculated using the sum of lower proportions
• Adjusted for overlap relief on a lease transaction
• Transitional rules apply
• Other 

Use ‘transitional rules apply’ if you’re filing a return where you’re electing for the transitional arrangements to apply due to the changes to the LTT main residential rates and bands made on 10 October 2022.

You may be able to make this election when:

• contracts have been exchanged before 10 October 2022 but not completed, and
• there are no substantial changes to the transaction between exchanging and completing.

Use ‘transitional rules apply’ if you’re filing a return where the exception to the LTT rates and bands changes made in December 2020 applies. This is when contracts have been exchanged before 22 December but not completed and the previous rates of tax may be used if there are no substantial changes to the transaction between exchanging and completing.

Further guidance on partnership transactions

Further guidance on overlap relief on a lease transaction

Further guidance on transitional rules for October 2022 main rates changes

Explanation of the calculation

Provide detail as to how you calculated the tax at the new figure.