What does the latest Land Transaction Tax news mean for me?
The Welsh Government announced on the 5th March 2021 that there will be an extension to the Land Transaction Tax holiday until the 30th June 2021, extending the scheme for a further three months. Under the scheme, property up to the purchase price of £250,000 will be exempt from the Land Transaction Tax if the sale of the property is completed before the 1st July 2021.
What are the current rules around the scheme?
For main residential properties, the changes mean that for the lowest tax free band, the higher limit has risen to £250,000, whereas after the Land Transaction Tax holiday those above £180,000 will need to pay 3.5% tax on the remaining portion of the price of the property.
|
Portion of the Property Price |
LTT rate (Until 30th June 2021) |
|
£0-£250,000 |
0% |
|
£250,001 -£400,000 |
5% |
|
£400,001- £750,000 |
7.5% |
|
£750,000- £1,500,000 |
10% |
|
£1.5m+ |
12% |
What happens to the Land Transaction Tax rates after 30th June 2021?
The rates from the 1st July 2021 for residential properties will be as follows for the tax percentage thresholds.
|
Portion of the Property Price |
LTT rate (1st July 2021) |
|
£0-£180,000 |
0% |
|
£180,001-£250,000 |
3.5% |
|
£250,001-£400,000 |
5% |
|
£400,001-£750,000 |
7.5% |
|
£750,001-£1.5m |
10% |
|
£1.5m+ |
12% |
What does this change mean for the housing market?
Across England, Northern Ireland & Wales, the Land Tax extension has meant that many people already a part of the buying and selling process might be able to complete their sale before the deadline. It’s also possible for those with properties currently on the market to benefit from the incentive, as demand from buyers is very strong.
If you are thinking of moving, why not book a free valuation with us to find out the value of your property?
