The Land Transaction Tax (Modification of Special Tax Sites Relief) (No. 3) (Wales) Regulations 2025 take effect at 12:01 a.m. on 21 November 2025. The instrument amends Schedule 21A of the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 to extend special tax site relief to the Flintshire and Wrexham Investment Zone, using the Senedd’s affirmative procedure.
Schedule 21A’s definition of a “special tax site” is updated to cross‑refer to the UK Government’s Designation of Special Tax Sites (Flintshire and Wrexham Investment Zone) Regulations 2025 (SI 2025/1080). Those UK regulations designate mapped areas at Deeside, Warren Hall and Wrexham Industrial Estate, which will form the boundaries for relief purposes in Wales.
The relief period for qualifying transactions within the Flintshire and Wrexham site runs from 21 November 2025 to 30 September 2034. The Welsh Government’s Explanatory Memorandum confirms ministers have moved from a five‑year to a ten‑year window for special tax site incentives, aligning timings across the programme.
Relief mechanics mirror existing sites. Where 100% of the consideration is attributable to qualifying land and the effective date falls within the relief period, the transaction is fully relieved from LTT. If less than 100% but at least 10% qualifies, partial relief reduces the tax in proportion to the qualifying share; where at least 90% qualifies, the transaction is treated as fully relieved through the partial‑relief rule.
Operational rules remain unchanged. Claims must be made in the LTT return (or an amendment) within the statutory filing window, and-subject to stated exceptions-relief can be withdrawn if the land ceases to be used in a qualifying manner during the control period.
The designation referenced in SI 2025/1080 is determinative for the mapped boundaries. For LTT, the areas that qualify are those originally designated in the UK regulations; later mapping changes do not take effect for LTT unless Schedule 21A is amended again. Practitioners should verify site maps at the point of transaction.
This measure sits alongside earlier Welsh regulations. Schedule 21A was created in November 2024 to provide relief for the Celtic Freeport, and amended in January 2025 to include the Anglesey Freeport; both run to 30 September 2029. The Investment Zone addition does not alter those end‑dates.
Process and scrutiny are recorded on the public record. The Cabinet Secretary laid the draft regulations on 21 October 2025; the Legislation, Justice and Constitution Committee noted both “No. 2” and “No. 3” instruments and their 21 November commencement at its 10 November session; and the Senedd debate was scheduled for 18 November.
For buyers, developers and local authorities, timing is critical. Transactions completing or substantially performed at or after 12:01 a.m. on 21 November 2025 within the mapped areas, and intended to be used in a qualifying manner, may be relieved; earlier effective dates remain under ordinary LTT rules. Claims must be included in the LTT return within 30 days of the day after the effective date.