Land Transaction Tax Changes In Wales
The Welsh Government has announced a temporary increase to the nil rate band of Land Transaction Tax (LTT) for residential property transactions in Wales, applicable from 27 July 2020.
The nil rate band for main rate transactions will increase from £180,000 to £250,000. All transactions that complete before then will be under the current rates and bands, and the revised rates and bands will apply until 31 March 2021. The tax paid for higher rate residential (second homes) or non-residential transactions (buy-to-let investment property) are unchanged.
These are the revised rates.
Price Threshold |
Main Residential Rate |
The portion up to and including £250,000 |
0% |
The portion over £250,000 up to and including £400,000 |
5% |
The portion over £400,000 up to and including £750,000 |
7.5% |
The portion over £750,000 up to and including £1,500,000 |
10% |
The portion over £1,500,000 |
12% |
Price Threshold |
Higher Residential Rate |
The portion up to and including £180,000 |
3% |
The portion over £180,000 up to and including £250,000 |
6.5% |
The portion over £250,000 up to and including £400,000 |
8% |
The portion over £400,000 up to and including £750,000 |
10.5% |
The portion over £750,000 up to and including £1,500,000 |
13% |
The portion over £1,500,000 |
15% |
Price Threshold |
Non-residential Rate |
The portion up to and including £150,000 |
0% |
The portion over £150,000 up to and including £250,000 |
1% |
The portion over £250,000 up to and including £1,000,000 |
5% |
The portion over £1,000,000 |
6% |
NPV Threshold |
Non-residential rent Rate |
The portion up to and including £150,000 |
0% |
The portion over £150,000 up to and including £2,000,000 |
1% |
The portion over £2,000,000 |
2% |
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