New Land Transaction Tax from 1 Aril 2018 replaces Stamp Duty Land Tax
15th October 2017
Land transaction tax (LTT), which comes into effect on 1 April 2018 in Wales, replaces stamp duty land tax, which is currently applied in England, Northern Ireland and Wales. Under the new system, the starting threshold for paying property tax will be £150,000 – compared with £125,000 at present. In the latest UK House Price Index for July, the average price of a property in Wales was £150,846 – just above the new property tax limit. Under the new rules, announced as part of the Welsh government budget for 2018-19, all buyers of residential properties costing up to £400,000 will pay the same or less tax than they currently do, with the average buyer paying almost £500 less tax than they do under stamp duty land tax. However, buyers looking for homes on the upper band rates between £400,000 and £925,000 will pay more than at present. For example, a buyer purchasing a property in…