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Property Acquisition Tax in Wales


HMRC have recently stated that “Tax is changing in Wales”; and it certainly is.

The Welsh Government and the National Assembly for Wales are taking on responsibility for several taxes paid in Wales, starting from April 2018. This is including property acquisition, which is a major area of change. In Wales, Stamp Duty Land Tax (SDLT) is to be replaced by Land Transaction Tax (LTT) beginning 1st April 2018.

Since 1st April 2016, HMRC has been charging higher rates of SDLT, especially in Wales. LTT is all set to continue this trend.

Until 31st March 2018 first time buyers in Wales will benefit from the Budget stamp duty relief announced in the Autumn Budget 2017 by the Chancellor. Moving forward under LTT, the starting threshold for residential rates will be £180,000. The Welsh Finance Minister, Mark Drakeford, has stated that this will take not only most first-time buyers out of tax, but also a lot of other taxpayers “looking to buy a home”.

Please see the below table on the future changes to LTT percentages.

Cost of Residential Purchase % Applied
£0 – £180,000 0%
£180,000 – £250,000 3.5%
£250,000 – £400,000 5%
£400,000 – £750,000 7.5%
£750,000 – £1.5m 10%
£1.5m and above 12%
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