‘Progressive’ property tax regime for Wales set to be implemented
From April 2018, individuals seeking to buy residential property in Wales will pay little or no tax on the purchase, under plans announced in the Welsh Draft Budget 2018-19.
Stamp Duty Land Tax (SDLT) will be replaced in Wales by a new Land Transaction Tax (LTT) on 1 April 2018.
Under the new LTT rules, the Welsh starting threshold for property tax will be the highest in the UK.
For properties priced between £0 and £150,000, a main residential rate of 0% will apply. Homes priced between £150,000 and £250,000 will attract a residential rate of 2.5%.
Meanwhile, residential properties priced between £250,000 and £400,000 will be subject to a main rate of 5%.
The rates can be viewed in full here.
Commenting on the new rates, the Finance Secretary for Wales, Mark Drakeford, stated: ‘From April, Wales will introduce the first Welsh taxes in almost 800 years, supporting first-time buyers and boosting business.
‘The devolution of tax powers provides us with the opportunity to reshape and make changes to improve existing taxes to better meet Wales’ needs and priorities.
‘These new progressive rates and bands for LTT . . . will make a real difference to people’s lives; help change behaviours and deliver improvements to communities across Wales.’