Welsh Government has revealed the proposed rates for the new Land Transaction Tax which will replace Stamp Duty Land Tax (SDLT) in Wales from April next year.

Residential Property

The new rates are:

The headline points;

  1. There is a wider tax free bracket making it easier for first time buyers and those at the bottom of the ladder;
  2. The highest rate of tax hasn’t changed so properties of over £1.5m will still be taxed at 12%;
  3. The main difference is in the middle brackets – buyers of properties worth between £400k and £925k are the ones that will see the increase from the position in England. Whereas under the SDLT regime properties worth between £250k and £925k are charged a tax of 5%, in Wales properties falling within £400k and £750k will be taxed at 7.5% and those between £750k and £925k will now be taxed at 10%.

The Welsh Government said that nine out of ten homebuyers in Wales would pay the same or less tax than they do currently.

The position remains the same for anyone buying a second home – they will be liable for an additional 3% on the value of the second property.

Non-Residential Property

The new rates are:

The only change to the rates for non-residential property is that an additional band has been added at the top end – purchasers of commercial property valued at over £1m will now pay 6%, an increase of 1%.