Changes to Stamp Duty Land Tax from the 1st April 2018
From the 1st April there will no longer be Stamp Duty Land Tax (“SDLT”) paid on property purchases in Wales.
The Welsh Government have obtained their own powers to set their own rates of tax on property purchasers. SDLT has been replaced with Land Transaction Tax (“LTT”). Like SDLT, LTT will work on a sliding scale dependent on the purchase price of the property. What is most notable and probably most welcomed is that for a standard residential purchase, there will be no tax payable for properties being purchased for less than £180, 000. This is clearly a significant jump from the SDLT threshold currently set at £125,000. There are separate rules for second property purchases and purchases by companies as these will be subject to the higher rate of LTT.
You can use the LTT calculator which can be found here https://beta.gov.wales/land-transaction-tax-calculator
For more information on how LTT can affect you, please contact our Conveyancing Solicitors here at J W Hughes & Co.