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?

Welsh government announces land transaction tax changes

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%

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