Stamp Duty in Wales is to be replaced by a new Land Transaction Tax (LTT), which comes into effect on the 1st April 2018. This replaces Stamp Duty Land Tax, which is currently applied in to property purchases in England, Northern Ireland and Wales.
Under the new system, introduced by the Labour run Welsh Assembly, the starting threshold for paying property tax will be £150,000 – compared with £125,000 at present which, according to the Welsh Government, could reduce the Stamp Duty owed by 9 out of 10 buyers.
However, buyers looking for homes on the upper band rate between £400,000 and £925,000 will pay more than at present. For example, a buyer purchasing a property in the region of £400,000 will currently pay 5% Stamp Duty but this will rise to 7.5% under the new rules. Ironically, those purchasing properties over £925,000 will still pay the same rate as those in England and Northern Ireland. Properties prices in most of Wales are considerably lower than in comparative areas in England so will still remain extremely competitive.
The additional tax for buying a second property will remain the same (a 3% surcharge on each band).
The table below sets out the current stamp duty rates in England and Wales with the new Land Transaction Tax affecting Wales from April 2018 shown below.
Current Stamp Duty Rates in England and Wales
£0 – £125,000 0%
£125,001 £250,000 2%
£250,001 -£925,000 5%
£925,001 -£1,500,000 10%
Above £1,500,001 12%
New Land Transaction Tax Rates in Wales from April 2018
£0 – £150,000 0%
£150,001 – £250,000 2.5%
£250,001 – £400,000 5%
£400,001 – £750,000 7.5%
£750,001 – £1,500,000 10%
Above £1,500,001 12%
If you are thinking of moving to West Wales, or purchasing property here, give West Wales Property Finders a call on 01834 862816. Not only can we find you your perfect property, we can save you time, stress and money at the same time. Almost 90% of the properties we find for our clients never hit the open market, thereby ensuring they get the pick of the crop and we can also recommend surveyors, solicitors, removal companies, builders and other tradesmen to ensure your move is as easy as possible.