Land Transaction Tax Update
LAND TRANSACTION TAX (LTT) UPDATE
The Welsh Government have announced today that the rate at which LTT is applied will be changing from 10th October 2022.
The nil threshold is increasing from £180,000 to £225,000. This will mean that buyers purchasing properties below £225,000 will no longer pay any LTT. There will also be a decrease in the rate of LTT (up to a maximum of £1,575) on the amount from £225,00 to £345,000. There will however be a small increase in the rate of LTTfor properties in excess of £345,000 of up to £550. There will be NO changes to LTT rates for people buying second homes.
LTT calculator, click here >> https://gov.wales/land-transaction-tax-calculator
In contrast, in England, the UK Government has made more substantial to the equivalent tax which is called Stamp Duty. Whilst this does not directly affect property transactions in Wales, it might mean that sellers who have struggled to sell their properties in England will benefit from buyers boosted by the stamp duty change, which could cause an increase in our buyer pool if those sellers are seeking properties in Wales.
If you'd like advice on how these changes could affect you, get in touch with our team and we'd be happy to chat it through with you:
01873 564424
abergavenny@taylorandcoproperty.co.uk