Stamp Duty rates changes for Welsh properties from 1 April 2018

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Stamp Duty rates changes for Welsh properties from 1 April 2018

View profile for Angela Dunlop
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Stamp Duty rates changes for Welsh properties from 1 April 2018

From 1 April 2018, a new "Land Transaction Tax" will be payable on Welsh and transactions.  This is instead of Stamp Duty Land Tax (SDLT).

There are however some exceptions:

  • retrospective notification cases. This is where a transaction completed before 1 April 2018 but did not become notifiable until 1 April 2018
  • transitional cases.  These are cases where a contract was entered into before 17 December 2014 but completion takes place on or after 1 April 2018
  • cross-border cases.  These relate to transactions for land that falls on both sides of the English/Welsh border. A buyer will only pay SDLT on the English part of the transaction
  • multiple interest cases.  This is a single transaction relating to properties in England and Wales.  Only English properties will be subject to SDLT.

What does this mean for me if I am buying a property in Wales?

If you are buying a property up to £150,000.00 you could end up paying less from 1 April 2018.

If however, you are buying a property from £150,001 you could end up paying more from 1 April 2018.

If you are looking to buy a property in Wales and require advice, please do not hesitate to contact our specialised Solicitors.

A table setting out the changes is below:

Stamp duty rates: Comparing England and Wales 

British system

ValueLiability
£0-125,0000%
£125,000-250,0002%
£250,000-925,0005%
£925,000-1.5m10%
£1.5m+ 12%

 

 

 

 

New Welsh system

ValueLiability
£0-150,0000%
£150,000-250,0002.5%
£250,000-400,0005%
£400,00-750,0007.5%
£750,000-1.5m10%
£1.5m+12%

 

 

 

 

Therefore, someone buying a home worth £500,000 in England would pay £15,000 in stamp duty. The same home in Wales would generate a land transaction tax bill of £17,500.

Those purchasing cheaper homes could pay less but those buying for £150,000 plus could end up paying more.

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