The Welsh Government has announced the threshold for paying Land Transaction Tax (LTT) is being increased from £180,000 to £225,000 with the change coming into force on 10 October 2022. Finance Minister Rebecca Evans raised the threshold on the Welsh version of stamp duty following last week’s UK mini budget.
However, the Welsh government said there will be a “small increase” in the rate of LTT for homes that cost more than £345,000.
The Welsh Government has announced the threshold for paying Land Transaction Tax (LTT) is being increased from £180,000 to £225,000 with the change coming into force on 10 October 2022. Finance Minister Rebecca Evans raised the threshold on the Welsh version of stamp duty following last week’s UK mini budget.
However, the Welsh government said there will be a “small increase” in the rate of LTT for homes that cost more than £345,000.
Ms. Evans said: “This is a change tailored to the unique needs of the housing market in Wales and contributes to our wider vision of a fairer tax system. 61% of homebuyers will not pay tax on their purchase.” Adding “These changes will get support to people who need it and help with the impact of rising interest rates.”
Unlike England, Wales has no special threshold for first-time buyers and Ms. Evans did not introduce one in her statement.
Other rates remain unchanged. Between £400,000 and £750,000 the rate is 7.5%, while between £750,000 and £1,500,000 it is 10%.
Purchases over £1,500,000 will pay 12%.
