Posted on 3.4.18
For those buying a property in Wales, from April 2018 UK Stamp Duty Land Tax (SDLT) will be replaced with Land Transaction Tax (LTT).
Land Transition Tax is payable when you buy or lease 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 legislation is broadly consistent with SDLT, reflecting key elements such as partnerships, trusts and reliefs, to provide stability and reassurance to businesses and the property market.
These changes have been made to ensure:
- focus on Welsh needs and priorities.
- simplify the tax and make it fairer
- improve its efficiency and effectiveness
The Welsh Revenue Authority (WRA) will now be responsible for collecting the Land Transaction Tax.
Additional residential properties
In 2016 higher rates of Stamp Duty Land Tax on purchases of additional residential properties (including second homes) came into effect. These will continue in the new Land Transition Tax.
First-time buyer Relief
The FTBR currently available for properties purchased in England does not apply under the rules for Welsh Land Transaction Tax. The WRA has raised the minimum threshold to £180,000 as opposed to the minimum threshold for SDLT which is £125,000 and believe that more purchasers will benefit in this way.
If you are buying and selling a house and are looking for an experienced, full-service conveyancing team to guide you through the process, give our Residential Property team a call on 0161 930 5151, e-mail email@example.com or obtain a free quote using our conveyancing quote calculator.