Wales amends land transaction tax

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.

Price threshold Rates
£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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