Wales to revisit land transaction tax
30th November 2017
Wales will consider amending its new land transaction tax in the wake of stamp duty being abolished for first-time buyers on all properties worth up to £300,000 in England and Northern Ireland.
Stamp duty was the headline-grabbing measure announced in chancellor Philip Hammond's Autumn Budget 2017, which was delivered on 22 November 2017.
First-time buyers in Wales can only take advantage of the Westminster policy until 1 April 2018, which is when Wales will replace stamp duty with its own land transaction tax.
Thereafter, all residential transactions under £150,000 in Wales would not be liable for the devolved levy - but this is half of the £300,000 threshold for first-time buyers in England and Northern Ireland.
Carwyn Jones, first minister of Wales, confirmed "there will be the need to respond to changes to stamp duty policy following the UK Budget".
Jones added that Mark Drakeford, finance minister of Wales, would have to "give consideration to whether changes should be made to land transaction tax" following Hammond's speech.
The decision to abolish stamp duty for first-time buyers on all properties worth up to £300,000 does not extend to those looking to get on the property ladder in Scotland.
Its land and buildings transaction tax rates are expected to be confirmed for 2018/19 in the Scottish Budget on 14 December 2017.
Contact us for stamp duty advice.