Welsh Land Tax News
Wales has decided to follow England and Northern Ireland by raising the price at which Welsh home buyers begin paying stamp duty from 180,000 to £225,000
The news will be welcome for many buyers looking to purchase their new home in Wales.
The changes to its Land Transaction Tax (LTT) will kick in on 10th October.
Whilst this is great news for the lower end of the market there will be a small extra cost to buyers of more expensive homes.
People buying homes under £225,000 will not pay any Land Transaction Tax.
Anyone buying a home costing less than £345,000 will see a reduction in the tax they pay, up to a maximum of £1,575.
People buying homes worth more than £345,000 will see an increase – up to £550 – but these only represent around 15% of property transactions in Wales.
All other elements of Land Transaction Tax will remain unchanged, meaning there are no tax reductions provided to those purchasing second homes in Wales, unlike with stamp duty land tax in England.
Rebecca Evans the housing minister for Wales says “This is a change tailored to the unique needs of the housing market in Wales and contributes to our wider vision of a fairer tax system,” says Rebecca Evans.
“61% of homebuyers will not pay tax on their purchase. These changes will get support to people who need it and help with the impact of rising interest rates.
“We also know that helping people at the lower end of the market will have a particular benefit for first time buyers.”
Information obtained from the Welsh Government Website