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Land Transaction Tax Looming

In October 2017, it was announced that Stamp Duty Land Tax (SDLT) was being replaced in Wales, with a new Land Transaction Tax.


As this new tax is due to be implemented in April 2018, it is worth revisiting what the tax will mean for purchasers in Wales.

One of the main changes that the Land Transaction brings is that the threshold of the 0% rate of tax will increase to £180,000.00 from the current amount of £125,000.00. This means that the average first time buyer will pay less tax than they would under the Stamp Duty System.

Although the new tax is likely to be beneficial for first time buyers, the amount of tax payable by people purchasing houses worth over £400,000.00 will significantly increase. It is estimated that somebody buying a bigger house could pay up to £17,500.00 more in tax than they would have under Stamp Duty Land Tax.


The below breakdown shows the difference in rates between the two regimes:


The current rates:


  • Up to £125,000 no tax
  • Between £125k and £250k 2%
  • Between £250k and £925k 5%
  • Between £925k to £1.5m 10%
  • Above £1.5m 12%

The new rates in Wales


  • Up to £180,000 no tax
  • Between £180k and £250k 3.5%
  • Between £250k and £400k 5%
  • Between £400k and £750k 7.5%
  • Between £750k to £1.5m 10%
  • Above £1.5m 12%


If you have any queries regarding the new Land Transaction Tax, or the current Stamp Duty regime, please contact our specialist property lawyers on 01792 648111.