The Welsh Assembly has announced the proposed rates and bands for land transaction tax (LTT) which is to be introduced for land and property in Wales on 1 April 2018, replacing Stamp Duty Land Tax.
Under the new rates for LTT, Wales will have the highest starting threshold for the property tax in the UK. The proposed rates are as follows:
Residential Property
|
Consideration (£)
|
Rate (%)
|
| 0 - 150,000 |
0 |
| 150,001 - 250,000 |
2.5 |
| 250,001 - 400,000 |
5 |
| 400,001 - 750,000 |
7.5 |
| 750,001 - 1.5m |
10 |
| 1.5m plus |
12 |
Non-residential property
|
Consideration (£)
|
Rate (%)
|
| 0 - 150,000 |
0 |
| 150,001 - 250,000 |
1 |
| 250,001 - 1m |
5 |
| 1m plus |
6 |
Announcing the rates and bands, Professor Mark Drakeford, Cabinet Secretary for Finance and Local Government, said:
'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. I have always been clear that we will use these powers to help improve fairness and support jobs and economic growth in Wales.
These new progressive rates and bands for land transaction tax and landfill disposals tax will make a real difference to people's lives; help change behaviours and deliver improvements to communities across Wales. We are being bold but balanced and leading the way in creating a fair and progressive tax system.'
Internet link: GOV.UK Wales