A new property tax is to replace Stamp Duty Land Tax (SDLT) in Wales from April 1. The Welsh Government is introducing the Land Transaction Tax (LTT), which will be collected and managed within Wales by a new body called the Welsh Revenue Authority (WRA).
The first-time buyer exemption introduced in the Budget last year will no longer apply in Wales. This exemption means first-time buyers do not pay SDLT on the first £300,000 of any property or land transaction.
However, as the average price paid by first-time buyers in Wales is £135,000, significantly below the starting threshold for the LTT of £180,000, few first-time buyers will be liable to pay the duty at all.
Rather than submit an SDLT return to HMRC as is the current practice, all solicitors on Home Move Network’s nationwide panel will register with the WRA before April 1 to ensure the smooth processing of the new tax.
Kay Powell, who is the Law Society’s policy adviser for Wales, said: “Our members have played a key role in the design and development of the system and their insights and comments have been invaluable at every stage in the process. Our aim has been to ensure the seamless introduction of the Land Transaction Tax.”
What you will pay
The new rates (by percentage of purchase price) are:
|Over £1.5 million||12%|
So, if you buy a house or piece of land that is valued at £145,000, there is no LTT to pay. For a purchase valued at £210,000, there is no LTT to pay on the first £180,000 of the transaction with a 3.5 percent levy on the outstanding £30,000. That leaves an LTT bill of £1,050.
Since 2016, a surcharge of 3 percent has been applied on SDLT for second homes and properties bought by investors such as buy-to-let companies. That surcharge will continue to be applied in Wales through the LTT.
All solicitors on Home Move Network’s nationwide panel can deal with the conveyancing for a property or land purchase in Wales, so call today to get your transaction under way.
Your quote from Fridaysmove will reflect the payment of the Land Transaction Tax when the property or land is based in Wales.