The Welsh Government has today announced changes to the Land Transaction Tax thresholds for people buying their main home in Wales.
The starting threshold for Land Transaction Tax will increase from £180,000 to £250,000 for the residential main rates when this new measure is introduced on Monday 27th July 2020. This tax reduction will last until 31st March 2021.
The new threshold will further reduce the tax burden in Wales , and it is estimated that around 80% of homebuyers liable to the main rates of Land Transaction Tax, will not pay any tax. These changes reflect the nature of the housing market in Wales, where house prices on average are considerably lower in Wales – £162,000 – than in England where the figure is £248,000. For first time buyers, the average purchase price paid is £139,000 in Wales and £208,000 in England.
This tax reduction will not apply to purchases of additional properties including buy to let and second homes.
If you would like to speak to one of our experienced Property Solicitors about this or any aspect of the Conveyancing process, then please telephone us on (01267) 237441