LAND TRANSACTION TAX (WALES)


From 1st April 2018 Stamp Duty (SDLT) will be replaced in Wales with a new tax payable to the Welsh Assembly Government. This tax is called Land Transaction Tax (LTT).

The two taxes are broadly similar although slightly different rates are used. Most residential purchases up to £250,000 will mean a saving for purchasers of Welsh land when compared to SDLT.

Purchasers of Welsh land won’t pay any tax on properties up to £180,000, unless the property is a second home or a buy to let.

Generally speaking the amount of tax to be paid works out cheaper in Wales than in England, the difference varies depending on the purchase price but at the lower end of the market it can be over £1000 cheaper. For example buying a house in Wales for £180,000 would attract no LTT whereas the same house in England would attract £1,100 in SDLT.

First time buyers of properties priced over £180,000 will be slightly worse off, though, because there is no tax exemption in Wales (as there is under the SDLT). So, a first time buyer of a property for £250,000 in Chester will pay no SDLT. Conversely, a first time buyer of a property in Conwy for £250,000 will pay a LTT of £2,450.