If you are about to buy a property in Wales, you need to consider the new land transaction tax (LTT) that comes into effect for all property deals which complete on or after 1 April 2018.
The LTT replaces stamp duty land tax (SDLT) and in general its rates are lower (see table). If you are purchasing a residential property for more than £400,000 or commercial property costing more than £1.1 million, you may save some tax if you complete before 1 April.
There is no special exemption for first-time buyers, as the average amount paid for a first home in Wales is around £160,000 which falls within the zero-rate band.
Individuals purchasing a second home for £40,000 or more will pay the additional property rate of LTT.
Companies also pay the additional property rate on the purchase of residential properties for £40,000 or more.
Would you like help and advice on this or any other issue?
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This note was published from our Spring 2018 Newsletter dated March 2018Please be aware that the information above may have changed in subsequent months.
This note is written for the general interest of our clients and is not a substitute for consulting the relevant legislation or for taking professional advice.