From the 1 April 2018, Land Transaction Tax (LTT) will be payable on any land transactions in Wales, and will replace Stamp Duty Land Tax (SDLT).

The Welsh Government states that changes have been made to:

  • simplify the tax and make it fairer
  • improve its efficiency and effectiveness
  • focus on Welsh needs and priorities.

The legislation is broadly consistent with SDLT, preserving the underlying structure and mirroring key elements of SDLT such as partnerships, trusts and reliefs, so as to provide stability and reassurance to businesses and the property market. However, different amounts of tax will be payable on property transactions from the 1 April depending on whether the property is situated in England or Wales. Transactions involving properties that straddle the border between England and Wales will need to submit both an SDLT and a LTT return form, with consideration apportioned on a “just and reasonable basis”.

Generally, for both residential and non-residential property, buyers will pay less tax in Wales on cheaper properties, and more tax on expensive properties. The higher rates on purchases of additional residential properties (including second homes), which came into effect on the 1 April 2016, will continue to apply.

If you require further assistance, please contact Susan Johnson – Senior Associate or any member of the Edwin Coe Property team.

Edwin Coe LLP is a Limited Liability Partnership, registered in England & Wales (No.OC326366). The Firm is authorised and regulated by the Solicitors Regulation Authority. A list of members of the LLP is available for inspection at our registered office address: 2 Stone Buildings, Lincoln’s Inn, London, WC2A 3TH. “Partner” denotes a member of the LLP or an employee or consultant with the equivalent standing.

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