Shropshire Star

Rates announced for new land tax in Wales

The rates have been announced for the new Land Transaction Tax (LTT) which will replace UK Stamp Duty Land Tax (SDLT) in Wales from 1st April 2018.

Published

Like SDLT, LTT will be payable when buying or leasing a building or land over a certain price. It may affect house buyers and sellers and businesses including builders, property developers and agents involved in the transaction process, such as solicitors and conveyancers.

The changes aim to simplify the tax and make it fairer, improve its efficiency and effectiveness and focus on Welsh needs and priorities.

The LTT rates and bands will be as follows:

Residential rates:

Price threshold Main residential rates

£0 - £150,000 0%

£150,000 - £250,000 2.5%

£250,000 - £400,000 5.0%

£400,000 - £750,000 7.5%

£750,000 - £1.5m 10.0%

£1.5m plus 12.0

"It is claimed that the average first time buyer will pay no tax and the average buyer will pay less tax than under stamp duty land tax," said Eifion Bibby of Davis Meade Property Consultants.

" Also we are informed that around 90 per cent of residential transactions which would have been taxed under stamp duty land tax will pay the same or less tax with LTT."

For additional residential properties, including second homes, the higher rate of tax payable will be an additional three per cent on top of the main residential rate in each band, the same as the current regime

Wales is also increasing the tax on non-residential and mixed use properties (including farms) selling at more than £1 million to six per cent on that excess.

For further advice contact Eifion Bibby at the Eifion Bibby at the Colwyn Bay office of Davis Meade Property Consultants on 01492 510360 email: eifionbibby@dmpcuk.com