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LTT

Welsh Government introduce additional charge for LTT

Q4 2020
Home Knowledge and Research Welsh Government introduce additional charge for LTT

On 21 December 2020, the Welsh Government announced in the draft budget changes to the higher residential rates, and non-residential rates and bands, of Land Transaction Tax (LTT).

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Vanessa Hale

Director, Research

+44 20 7318 4675
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It was confirmed that the temporary increase to the nil rate band of LTT for residential property transactions will end on 31 March 2021 and an introduction of a higher residential rates of LTT was announced. This new additional charge will apply to the sales of second homes and buy-to-let properties as opposed to a main residential home. LTT will increase by 1% across all bands as of 22 December 2020, meaning second home owners will now pay a 4% levy when they buy homes up to £180,000, rising to 16% for homes worth £1.6m or above.


The table below reflects the new second home or buy to let property purchase in Wales effective on or after 22 December 2020.


Price Threshold

LTT Rate

The portion up to and including £180,000

4%

The portion over £180,000 up to and including £250,000

7.5%

The portion over £250,000 up to and including £400,000

9%

The portion over £400,000 up to and including £750,000

11.5%

The portion over £750,000 up to and including £1,500,000

14%

The portion over £1,500,000

16%


Source:

https://gov.wales/land-transaction-tax-rates-and-b...

https://gov.wales/land-transaction-tax-calculator