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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
| Value | Liability |
|---|---|
| £0-125,000 | 0% |
| £125,000-250,000 | 2% |
| £250,000-925,000 | 5% |
| £925,000-1.5m | 10% |
| £1.5m+ | 12% |
New Welsh system
| Value | Liability |
|---|---|
| £0-150,000 | 0% |
| £150,000-250,000 | 2.5% |
| £250,000-400,000 | 5% |
| £400,00-750,000 | 7.5% |
| £750,000-1.5m | 10% |
| £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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