On 1st April, the rules relating to Stamp Duty on property purchases change in Wales, as Stamp Duty Land Tax (SDLT) ceases to apply in Wales and a new Land Transaction Tax (LTT) is introduced.
LTT has a different set of rate bands from SDLT – for properties under £400,000 the amount of tax payable will be less under LTT in Wales than under SDLT in England; for properties over £400,000 the tax will be higher in Wales.
However, the First Time Buyer discount for properties under £500,000 which was introduced in last November’s UK budget is not going to apply to the new Welsh tax, which has a nil rate band of £180,000. The average price of a first home in Wales is £132,000 and the Welsh government says that 80% of first-time buyers will not pay LTT.
One further change to the law in Wales is that the Right to Buy council houses is being abolished, though this will not come into force until 2019.
If you are considering buying a property in England or Wales, speak to Latimer Lee’s conveyancing department on 0161 797 4000.