Land Transaction Tax set to replace Stamp Duty Land Tax in Wales

April 1 sees the first Wales-only tax change in 300 years with the introduction of the Land Transaction Tax (LTT).

Replacing Stamp Duty Land Tax (SDLT), the LTT will be collected and managed within Wales by the Welsh Revenue Authority (WRA), a new non-ministerial body set up by the Welsh Government.

Solicitors who are part of Best Value Conveyancing’s nationwide panel and are carrying out the conveyancing on land or property transactions in Wales will no longer submit an SDLT form to HMRC once the purchase has been completed.

Instead they will register with the WRA before April 1 and submit a form to its website for any completed transactions after that date.

If you’re buying a home in Wales, you can use the LTT calculator on the WRA website to work out your bill, if any.

What you will pay

The new rates (by percentage of purchase price) are:

First-time buyers will no longer benefit from the SDLT exemption introduced in last year’s Budget, which means they pay no stamp duty on the first £300,000 of any property transaction.

However, the average price of a first-time purchase in Wales is around £135,000, substantially below the threshold of £180,000 where the tax is applied, and that is likely to mean most of those buying for the first time in Wales won’t pay a penny of the LTT at all.

However, the 3 percent SDLT surcharge on second homes and buy-to-lets that was imposed in 2016 will continue to be applied in Wales.

Get your home purchase in Wales underway through Best Value Conveyancing’s nationwide panel of solicitors with one call to 08000 387 007 or get a no-obligation quote now.

Your quote from Best Value Conveyancing will reflect the payment of the Land Transaction Tax when the property or land is based in Wales.