This month, April 2018, sees changes to tax brackets for purchases of property based in Wales which is being implemented by the Welsh Revenue Authority (WRA).
Our Property Insights Team sets out a brief overview below.
Previously referred to as Stamp Duty Land Tax or SDLT, the new Land Transaction Tax (LTT) for Wales was implemented on April 1st and is part of the Welsh Government’s Devolved Taxes Act.
The purpose of the Act is to establish a new tax on land transactions (amongst other taxable areas) and the legislation is linked to the Tax Collection and Management (Wales) Act, which provides the powers to collect taxes. These powers are aimed to ensure that public services in Wales, and for Wales, will be safeguarded.
What does this change to LTT mean to you?
Land Transaction Tax will change how much tax you pay on commercial property transactions and we have included a table that shows the new LTT versus the previously titled SDLT
||Commercial Property Rates
||Main Residential Rates
||Rates of SDLT
|£0 - £150,000
|£150,000 - £250,000
|£250,000 - £1million
These rates apply to non-residential or commercial, freehold properties and also applies to ‘mixed use’ properties eg a flat above a shop.
The good news is that, for transactions under £1 million purchasers will be better off under the new LTT.
We have included a link to the Welsh Revenues Authority website which has a tax calculator to help you but please ring our conveyancing specialists for help with these changes.
Welsh Revenue Authority
Posted by Insight Law on
3 April 2018
Insight Law, Land Transaction Tax, LTT for Wales, Property Law, Property Law Specialists, Wales, Wales Tax, We Talk Property, Welsh Government, Welsh Revenue Authority