Welsh government announces land transaction tax changes

Published: 28th September 2022

The mini-Budget last week included big cuts to SDLT for all buyers of residential property. It was perhaps inevitable that the devolved governments would follow suit. The Welsh government has been the first to act, though the changes are relatively minor compared to the SDLT cuts. In respect of land transaction tax (LTT) from 10 October 2022:

  • the nil rate band will increase to £225,000 (currently £180,000); and
  • some rates will increase.

Previously, a rate of 3.5% applied between £180,000 and £250,000 and 5% between £250,000 and £400,000. From 10 October 2022, a rate of 6% will apply between £225,000 and £400,000.

The full LTT rates and bands will therefore be as follows:

 Rate bands that apply to purchase price Rate payable on part of price within each band
First £225,000 Nil
Between £225,001 and £400,000 6%
Between £400,001 and £750,000 7.5%
Between £750,001 and £1,500,000 10%
Over £1,500,000 12%
Gavel and house key on the table