Latest Land Transaction Tax cut could save you thousands of pounds. Here's how…

Latest Land Transaction Tax cut could save you thousands of pounds. Here's how…

These changes mean that the threshold for tax is being increased from £180,000 to £225,000.

61% of buyers in Wales will not pay any Land Transaction Tax on their property purchase. Are you one of them?

Finance Minister Rebecca Evans announced some fantastic new measures for buyers in Wales. Anyone buying a property for less than £225,000 will now pay no tax. The threshold for paying Land Transaction Tax is being increased from £180,000 and the change will come into force from 10th October.

This follows the stamp duty threshold increasing to £250,000 in England last week - with the threshold for first-time buyers increasing from £300,000 to £425,000. The new Chancellor Kwasi Kwarteng said the move would take 200,000 people out of paying stamp duty altogether. The Welsh finance minister did not introduce any specific new measures for first-time buyers.

Here’s all you need to know about how the tax changes in Wales affect you…

What exactly is Land Transaction Tax? 


LTT (Land Transaction Tax) is payable when you buy a property or land over a certain price threshold in Wales. The current LTT threshold is:
  • £180,000 for residential properties (if you do not own other property)
  • 225,000 for non-residential land and property

How will the tax changes benefit you?

Finance Minister Rebecca Evans said: “This is a change tailored to the unique needs of the housing market in Wales and contributes to our wider vision of a fairer tax system. 61% of homebuyers will not pay tax on their purchase. These changes will get support to people who need it and help with the impact of rising interest rates.”

So, anyone purchasing a property in Wales for under £225,000 will now pay no tax. Anyone buying a home costing less than £345,000 will see a reduction in the tax they pay, up to a maximum of £1,575. This is great news for anyone thinking of entering the housing market or moving home.

Are there any changes that landlords should be aware of? 

Ms Evans did not announce any changes to the additional homes surcharge, so that will remain as before. Rates for all second home owners remain unchanged as of now.

What else has changed?

As part of the tax changes, there will also be a small rise in the rate of Land Transaction Tax for homes that cost over £345,000 - up to £550. However, these sorts of transactions only represent around 15% of property purchases in Wales. 

Curious to find out how much your home is worth?