Land Transaction Tax – all change for Wales
From 1st April 2018 Land Transaction Tax (LTT) has replaced Stamp Duty Land Tax...
Back to News and EventsFrom 1st April 2018 Land Transaction Tax (LTT) has replaced Stamp Duty Land Tax...
Back to News and EventsFrom 1st April 2018 Land Transaction Tax (LTT) has replaced Stamp Duty Land Tax (SDLT) in Wales.
Like SDLT, LTT will be payable when you buy or lease a building or land over a certain price. All parties involved may be affected and it is important to be aware of the changes that have been made.
In essence, LTT is broadly consistent with SDLT. However, it is prudent that parties to Welsh transactions are aware of the reasons the Welsh Government have implemented the changes. These are to:-
The bill received Royal Assent on 24 May 2017 and came into force on 1 April 2018, meaning any property transactions completed from that date in Wales must have a LTT Return completed and filed with the Welsh Revenue Authority who will be responsible for collecting the tax.
LTT bands for residential properties are detailed below:-
The Welsh Government has focused the assistance that LTT will have on first time buyers. They believe the buyers of lower value properties will pay less LTT compared to SDLT, while the buyers of more expensive properties will pay in some cases substantially more LTT then SDLT.
It is important to note that purchasers of additional residential property and purchases by a company will be subject to an additional rate of LTT of 3% which is in line with the current rates of SDLT.
An LTT calculator is available on the Welsh Revenue Authority website:-
https://beta.gov.wales/land-transaction-tax-calculator
For further information about the new tax, please visit the following website:-
http://gov.wales/funding/fiscal-reform/welsh-taxes/land-transaction-tax/?lang=en
The changes in both SDLT and LTT recently can make it feel like a minefield when considering your property purchase. If you have any questions or concerns, please contact a member of the Conveyancing Team on 0800 389 7093 who will be happy to assist with your query.
Poole Alcock LLP is a Limited Liability Partnership and is authorised and regulated by the Solicitors Regulation Authority. Registered in England and Wales at: 2nd Floor, 34-36 High Street, Nantwich, Cheshire, CW5 5AS. Telephone: 01270 625478. LLP registration number 0C310420 Poole Alcock LLP has offices in Alsager (SRA No: 408249), Congleton (SRA No: 408248), Crewe - Nantwich Road (SRA No. 639144.), Nantwich - The Dowery (SRA No: 408250), Nantwich - High Street (SRA No: 408247), Sandbach (SRA No: 408252) and Wilmslow (SRA No: 654460). The firm's VAT number is 278 8524 07. A list of members is available for inspection at any of our offices. We use the word "partner" to refer to a member of the LLP. All solicitors are subject to rules and principles of professional conduct. The SRA Standards and Regulation including our code of conduct can be found at SRA | SRA Standards and Regulations | Solicitors Regulation Authority
Terms & Conditions Privacy Policy Privacy Policy for Employees Cookies Policy Complaints Policy