Stamp Duty rates changes for Welsh properties from 1 April 2018
- AuthorAngela Dunlop
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
New Welsh system
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.