Welsh government announces land transaction tax changes
Following the mini-Budget announcement that stamp duty land tax (SDLT) would be cut significantly, the Welsh government has responded by announcing changes to the devolved equivalent. What’s the full story?
The mini-Budget last week included big cuts to SDLT for all buyers of residential property. It was perhaps inevitable that the devolved governments would follow suit. The Welsh government has been the first to act, though the changes are relatively minor compared to the SDLT cuts. In respect of land transaction tax (LTT) from 10 October 2022:
- the nil rate band will increase to £225,000 (currently £180,000); and
- some rates will increase.
Previously, a rate of 3.5% applied between £180,000 and £250,000 and 5% between £250,000 and £400,000. From 10 October 2022, a rate of 6% will apply between £225,000 and £400,000.
The full LTT rates and bands will therefore be as follows:
|
Rate bands that apply to purchase price |
Rate payable on part of price within each band |
|
First £225,000 |
Nil |
|
Between £225,001 and £400,000 |
6% |
|
Between £400,001 and £750,000 |
7.5% |
|
Between £750,001 and £1,500,000 |
10% |
|
Over £1,500,000 |
12% |
Related Topics
-
Selling spare items to your company
You’re short of cash but if you use the traditional methods to take more money out of your company you’ll pay higher rate taxes. Is there another way to extract profits without paying income tax or NI?
-
No such thing as a (tax) free lunch?
You run a small consultancy company and treat your staff to lunch in the office once a week. Your bookkeeper says it’s a taxable benefit in kind because staff lunches are only exempt if they are provided in a workplace canteen. Is this correct?
-
Judge criticises use of fabricated AI-generated cases in HMRC appeal
A tax tribunal judge has criticised the use of apparently fabricated case references generated by artificial intelligence in an appeal against HMRC. The incident highlights growing concerns over the use of AI tools in legal and tax proceedings. What happened?