Wales announces nil rate band increase for LTT
15 July: Following the Summer Statement announcement of the increase to the stamp duty land tax nil rate band, Wales has announced an increase in its nil rate band for residential property to £250,000 effective from 27 July.
From 27 July 2020, the Welsh Government has announced a temporary increase to the nil rate band of land transaction tax (LTT) for residential property transactions in Wales from £180,000 to £250,000. The temporary increase will apply from 27 July 2020 until 31 March 2021.
This means that purchasers paying more than £250,000 for their home during this period will make an LTT saving of £2,450.
The tax paid for higher rate residential or non-residential transactions are unchanged. The higher residential rate applies where the property purchaser already owns one or more residential properties.
This means that unlike England, Northern Ireland and Scotland, the increase in the nil rate band will not benefit second homeowners and residential landlords.
|Price threshold||Main residential rate for transactions with an effective date to 26 July 2020||Main residential rate for transactions with an effective date on or after 26 July 2020||Higher residential rate|
|The portion up to and including £180,000||0%||0%||3%|
|The portion over £180,000 up to and including £250,000||3%||0%||6.5%|
|The portion over £250,000 up to and including £400,000||5%||5%||8%|
|The portion over £400,000 up to and including £750,000||7.5%||7.5%||10.5%|
|The portion over £750,000 up to and including £1,500,000||10%||10%||13%|
|The portion over £1,500,000||12%||12%||15%|