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New Land Transaction Tax (LTT) Update

LTT

Land Transaction Tax (Wales version of stamp duty) from 1 July 2021.

There are some changes in place to Land Transaction Tax (LTT) rates and bands to be aware of.

Welsh Government announced in early March 2021 a temporary increase to the nil rate band of LTT for residential property transactions, up to and including properties worth £250,000. They extended the residential nil band rate until June 30th 2021 which has now ended.

The nil band for transactions from 1 July 2021 onwards on properties in Wales will be for residential properties up to and including £180,000. There will not be any transitional rules. You needed to have completed before 1 July to have avoided the hike in tax.

New band rates

The higher residential rates of LTT will increase by 1% across all bands (from July 1 2021) too. If you complete a property before 1 July you pay previous rates of tax. All property purposes from July 1st that exceed £180k will be subject to the following LTT tax rates (sourced from gov.wales):

  • 3.5% (the portion over £180k up to and including £250k)
  • 5% (the portion over £250k up to and including £400k)
  • 7.5% (the portion over £400k up to and including £750k)
  • 10% (the portion over £750k up to and including £1.5m)
  • 12% (the portion over £1.5m)

For further information visit the Gov Wales website.

Let’s Talk

For support and advice on your property, including all types of property management matters, please don’t hesitate to contact team LHP. With over 85 years’ experience as trusted advisors with great local knowledge and with offices across South Wales in Carmarthen, Cross Hands near Swansea, Haverfordwest, Tenby and Lampeter, you are in safe hands.

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