Proposed Changes to Stamp Duty for Properties in Wales

 

There are big changes coming to Stamp Duty Land Tax (SDLT) in Wales in 2018.

Currently in Wales, buyers pay SDLT on purchases over a certain value. The Welsh Assembly recently introduced a new Bill, to replace SDLT with Land Transaction Tax (LTT), which is expected to receive Royal Assent next Spring.

The legislation will be in line with the current UK Stamp Duty rules and marks another step for the Welsh Assembly to create taxes which are more suitable for the needs of Wales and its circumstances. In other words, Wales will benefit from the revenue raised by Land Transaction Tax.
In terms of figures, it is reported that in 2014 and 2015, £170million was raised from Stamp Duty Land Tax in Wales and this figure is expected to rise.

The new Tax will affect anyone who is buying or leasing property over a certain value, though no rates have yet been issued. It is expected the new LTT rates will be announced nearer to April 2018.

It is not yet known how the Government will approach second properties under the new LTT.

 
js30430510jpg
Welsh Finance Secretary Mark Drakeford praised the upcoming change.
The Welsh Finance Secretary Mark Drakeford said “This Bill marks another step towards the creation of taxes which are more suited to the needs of Wales and support Welsh public services. It's a historic milestone in the devolution of tax powers to Wales."

Scotland already have their own property tax and the government have been able to learn from this as part of their consultation process.

Wales lost its control of the tax system in the 13th Century so this certainly is exciting news!

If you have property needs then our expert, friendly team are more than happy to help. Read more about our conveyancing service by clicking here or call us to speak to us directly.
 
//]]>