The Wales Act 2014 and the Wales Act 2017 devolved taxation and borrowing powers to the Welsh Government and National Assembly for Wales. This has seen large changes in Welsh Taxation policies. From 01 April 2018, Land Transaction Tax (“LTT”) replaced Stamp Duty Land Tax (“SDLT”) in Wales.
LTT is payable when you buy a freehold property, buy a new or existing leasehold or are transferred land or property in exchange for payment, for example, you take on a mortgage or buy a share in a house. When calculating the amount of LTT payable on your property purchase, you will need look at 3 main factors.
- When you bought the property.
- Whether the property is residential or not.
- How much you paid for the property.
The current residential tax rates for transactions on or after 10 October 2022 are:
- Price paid is up to and including £225,000 – 0%
- Price paid is over £225,000 up to and including £400,000 – 6%
- Price paid is over £400,000 up to and including £750,000 – 7.5%
- Price paid is over £750,000 up to and including £1,500,000 – 10%
- Price paid is over £1,500,000 – 12%
Please note, if you already own a residential property, your subsequent purchases will be subject to higher residential rates. These higher rates also apply to companies buying residential properties or trust buying residential property.
The current non-residential tax rates for transactions on or after 22 December 2022 are:
- Price paid is up to and including £225,000 – 0%
- Price paid is over £225,000 up to and including £250,000 – 1%
- Price paid is over £250,000 up to and including £1,000,000 – 5%
- Price paid is over £1,000,000 – 6%
It is the responsibility of the purchaser to calculate LTT, submit an accurate tax return and make the correct payment. In certain cases, reliefs are available. A solicitor or conveyancer can help you claim any relief you’re eligible for and ensure you calculate LTT correctly.
For further information on this topic or on any other legal area, please contact John Szepietowski or Kay Stewart at Audley Chaucer Solicitors on 01372 303444 or email admin@audleychaucer.com or visit our Linkedin page at https://www.linkedin.com/company/audley-chaucer-solicitors/
This information is correct as of March 2023