Wales amends land transaction tax
12th December 2017
Wales has raised its land transaction tax (LTT) rate from £150,000 to £180,000 for all homebuyers.
The move was announced in response to a stamp duty exemption for first-time buyers spending up to £300,000 in England, Northern Ireland and - until 31 March 2018 - Wales.
As of 1 April 2018, all homes in Wales worth up to £180,000 will be exempt from tax.
According to the Welsh government, the new LTT rates will reduce the tax burden for around 24,000 homebuyers in Wales, including first-time buyers.
|£0 to £180,000||0%|
|£180,000 to £250,000||3.5%|
|£250,000 to £400,000||5%|
|£400,000 to £750,000||7.5%|
|£750,000 to £1.5 million||10%|
|Above £1.5 million||12%|
Mark Drakeford, finance secretary of Wales, said:
"Under the changes to the main rates of land transaction tax, around 65% of these house sales will not be liable for tax.
"The changes will benefit more buyers than the chancellor's targeted relief for first-time buyers - more than half of buyers will benefit from a reduction in tax relative to stamp duty land tax.
"These improved rates will help meet Wales' needs and will make a real difference to people's lives."
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