Welsh Land Transaction Tax

Welsh Land Transaction Tax

From April 2018, Wales will introduce the Land Transaction Tax (LTT); its own version of Stamp Duty Land Tax (SDLT).  LTT will be paid by the purchaser of a leasehold or freehold interest in Welsh land and buildings.  The move takes homes under £150,000 out of the bracket for tax however; the addition of further tax bands increases the cost of purchasing homes over £150,000, £400,000 and £750,000.

For example; buying a £500,000 home in Wales the LTT bill will be £17,500 compared with £15,000 SDLT in England.

Current rates

– Up to £125,000
– Between £125k and £250k
– Between £250k and £925k
– Between £925k and £1.5m
– Above £1.5m
0%
2%
5%
10%
12%

The new rates in Wales

– Up to £150,000
– Between £150k and £250k
– Between £250k and £400k
– Between £400k and £750k
– Between £750k and £1.5m
– Above £1.5m
0%
2.5%
5%
7.5%
10%
12%

We understand the 3% surcharge for additional properties purchased will still apply.

The proposed commercial rates are as follows:

Non-residential rates

– Up to £150,000
– Between £150k and £250k
– Between £250k and £1m
– About £1m
0%
1%
5%
6%

Non-residential lease rates

– Up to £150,000
– Between £150k and £2m
– About £2m
0%
1%
2%

 

If you would like to learn more about Welsh Land Transaction Tax please contact Diane Nettleton – diane.nettleton@kilsbywilliams.com