Senedd News: Land Transaction Tax (LTT) - SL laid before the Senedd

LTT replaced Stamp Duty Land Tax (SDLT) in Wales from 1 April 2018. The Welsh Revenue Authority (WRA) collects and manages the tax for the Welsh Government.

Speaking from the Senedd Chamber yesterday (09.07.24), Rebecca Evans the Welsh Government’s Cabinet Secretary for Finance, Constitution and Cabinet Office stated:
 
 The regulations before the Senedd are subject to the draft affirmative procedure. If the Senedd approves them today, I expect them to come into force on Friday (12.07.24). I’m grateful to the Legislation, Justice and Constitution Committee and the Finance Committee for their reports. The Legislation, Justice and Constitution Committee has raised a technical scrutiny point and we have responded. The very minor error identified in the draft statutory instrument has now been corrected in advance of the regulations being made. The regulations will make changes to the land transaction tax higher residential rates refund and exception rules. LTT partial refunds are available to those who have paid the higher residential rates when buying a new home prior to selling their existing home. LTT higher residential rate exceptions are available to those who sell their old home before purchasing a new one but who own an interest in another dwelling at the time that they buy the new home. The refund and exception periods are available for three years from the time of a relevant transaction and are beneficial to homebuyers bridging between homes.

Evidence indicates that, while three years is usually long enough to support homebuyers, it can be too short in some truly exceptional circumstances. We are therefore proposing that the refund and exception periods be extended without limit for property transactions that are delayed by unresolved fire safety defects and emergency restrictions. In relation to unresolved fire safety defects, the new rules will allow future refund claims in relation to transactions that take place after the regulations come into force, but also in relation to claims where the three-year period has already expired, providing they would otherwise have been eligible within the original three-year period. In relation to emergency restrictions, the new rules will extend the three-year period for refunds and exceptions relating to relevant transactions where such emergency restrictions take place in the future. Recent public consultation has indicated a strong degree of support for the proposals, and I ask Members to approve these regulations.
 


Who has to pay LTT
You must pay LTT if you buy a property or land over a certain price threshold in Wales. The threshold is where the tax starts to apply.
The current LTT threshold is:

• £225,000 for residential properties (if you do not own other property)
• £225,000 for non-residential land and property

Based on the LTT rates and bands set by the Welsh Government.
There are different rules if you already own one or more residential properties, and you may need to pay the higher residential rates. However, if you’re replacing your main residence, the higher rates may not apply. See our guide to higher rates.
You pay the tax when you:

• buy a freehold property
• buy a new or existing leasehold
• are transferred land or property in exchange for payment, for example, you take on a mortgage or buy a share in a house

LTT is a self-assessed tax. It’s the responsibility of the taxpayer to complete and submit an accurate tax return and pay any tax due.
You must send a LTT return even if there’s nothing to pay, except for certain transactions that do not need a return.
How much you pay
How much you pay depends on if the property is residential or non-residential.
You can use our tax calculator to help you work out how much you’ll pay.
The amount you pay might be affected if you’re buying:

• a property when you already own one
• more than one property
• cross-border property

For more information on this tax please click on: Land Transaction Tax | GOV.WALES