Following on from the UK mini-budget last week which, amongst other tax changes, raised the threshold of Stamp Duty Land Tax (SDLT) from £125,000 to £250,000, homebuyers in Wales have been eagerly waiting to see if the Welsh Government would make similar changes to the rate of Land Transaction Tax (LTT).
Yesterday the Welsh Government announced that, “to give clarity to the housing market” that the such changes in Wales would be made, meaning that, from 10th October 2022, buyers purchasing properties for less than £225,000 will not have to pay LTT.
Whilst this increase in the LTT threshold (from the previous figure of £180,000) will benefit many existing and new buyers, it was also announced that home buyers purchasing for more than £345,000 would see an increase, of up to £550, in the rate of tax they are required to pay.
It is important to note that those buyers purchasing second properties will not benefit from any changes as the rate for second home buyers remains unchanged.
From the information released to date, these changes appear to be a permanent, at least for now, as there has been no mention of a “holiday” or any end date to revert back to the old rates.
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This article is for general information purposes only and does not constitute legal or professional advice.