Chartered Certified Accountants
and Business Advisers
Land Transaction Tax is payable by the purchaser in a land transaction which occurs in Wales. At Sloane & Co LLP, we can provide guidance on Land Transaction Tax in the London area.
From 1 April 2018, a new Land Transaction Tax (LTT) replaces Stamp Duty Land Tax (SDLT) in Wales. LTT is broadly consistent with SDLT, but also introduces some key changes. Here, we outline these.
LTT is payable by the purchaser of residential or non-residential property in a land transaction occurring in Wales from 1 April 2018. For land transactions prior to 1 April 2018 see our factsheet on SDLT.
A transaction will trigger liability to LTT if it involves the acquisition of an interest in land. This will include a simple conveyance of land, such as buying a house, creating a lease or assigning a lease.
LTT is operated by the WRA, and individuals who are liable to the tax must complete and submit an LTT return (see later).
Individuals must send an LTT return and pay the tax due to the WRA within 30 days of the day after completion (or other effective date of the transaction). Penalties and interest may be charged if you fail to file your LTT return or pay the necessary tax within the 30 days after the day of completion.
In some circumstances, buyers are not required to send a LTT return or pay LTT. These include instances where:
For cross-border cases, a home buyer will only be required to pay SDLT on the English part of the transaction. An individual may have to also pay LTT to the Welsh Revenue Authority (WRA) for the Welsh part of the transaction.
During the 2018/19 Welsh Draft Budget, Finance Secretary for Wales, Mark Drakeford, outlined new LTT rates, which take effect from 1 April 2018.
Unlike SDLT, LTT does not provide any relief for first-time homebuyers in Wales.
However, during the Welsh government’s 2018/19 Draft Budget, Finance Secretary for Wales, Mark Drakeford, announced an increase in the starting threshold for LTT from £150,000 to £180,000, effective from April 2018. Mr Drakeford stated that the increase in the starting threshold will help to ‘reduce the tax burden for around 24,000 homebuyers’ in Wales.
The Welsh government anticipates that, under LTT, around 80% of first-time homebuyers will pay no tax.
If contracts were entered into after 22 November for the purchase of property in Wales, the following conditions will apply:
If you are in the London area please do contact us for guidance on Land Transaction Tax.