It has been announced that ‘Land transaction tax’ will be riased in Wales, meaning about 80% of house sales will be exempt from paying tax. This announcement was made this week by finance Minister Rebecca Evans. It will bring the rate payable for properties valued at between £180,000 and £250,000 to zero from 27 July until the end of March 2021. Properties selling for less than £180,000 are already exempt from paying the tax. The tax is known as ‘stamp duty’ in England and Northern Ireland. This has already been waived for properties across England and Northern Ireland to the value of £500,000.
Ms Evans has stated “I can today confirm that I am increasing the main starting rate for Land Transaction Tax so that no tax will be paid on main residential property purchases for less than £250,000.’ ‘This will take effect on 27 July to coincide with the full reopening of the housing market in Wales. This is a tax holiday that will last until 31 March 2021.”
“Unlike in England, this new threshold will not apply to the purchase of additional properties such as buy-to-lets or second homes. It will support people looking to purchase their first home or those seeking to move up the property ladder. It will offer more targeted help to those who may be affected by the economic challenges resulting from the pandemic.” She went on to say, “This decision will not only provide support to homebuyers, it will also free up some £30m to invest in a different, even more direct stimulus to the housebuilding industry,”. “I am pleased to confirm that this funding will be committed to the construction of modern social homes, supporting jobs and securing a decent place to call home for those who need it”.
If you are looking to take advantage of this announcement, and are looking to purchase your first home in Wales, we would love to help. Buying your first home is likely to be the most expensive purchase you will make. You therefore need to ensure that the property you buy isn’t coming with lots of hidden costs. Having a survey done might make you reconsider buying the property or renegotiating the price based on the findings.
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