ICAEW.com works better with JavaScript enabled.


ICAEW responds to Welsh Government’s consultation on local variation to land transaction tax rates


Published: 22 Mar 2022 Update History

There are better ways to deliver affordable housing than local rates of land transaction tax rates, says ICAEW in response to the Welsh Government’s consultation on local variation to LTT for second homes, short-term holiday lets and other additional residential properties.

ICAEW’s representation, published as ICAEW REP 28/22,highlights that while ICAEW members support the provision of affordable homes for people who live and work locally, they did not favour a further increase in the rate of land transaction tax (LTT) for second homes and holiday lets as the means to address the problem. Such properties are already subject to a 4% LTT surcharge and there is concern that this additional tax would increase prices for holidays in the affected areas, thereby damaging the Welsh tourist industry and the local community which relies on tourism.

ICAEW’s Tax Faculty’s response to the Welsh Government’s consultation on introducing local variation to land transaction tax rates in Wales was written in collaboration with ICAEW’s Director for Wales and members in Wales. ICAEW members thought the policy objective of ensuring sufficient availability of affordable housing in Wales would be better achieved through the planning process.

The representation also highlights that a system of charging what would effectively be local rates of LTT in addition to the existing national rates would add considerable administrative complexity to the tax system and runs against many of the principles of good tax policy set out in the Tax Faculty’s Ten Tenets for a Better Tax System

Tax Faculty

This guidance is created by the Tax Faculty, recognised internationally as a leading authority and source of expertise on taxation. The Faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.

More support on tax

ICAEW's Tax Faculty provides technical guidance and practical support on tax practice and policy. You can sign up to the Tax Faculty's free enewsletter (TAXwire) which provides weekly updates on developments in tax.

Sign up for TAXwireJoin the Tax Faculty

More from the Tax Faculty

Latest news
Making tax digital image

Stay up to date with the latest developments in tax by signing up to the Tax Faculty's weekly e-newsletter

Practical guidance

Comprehensive support for Tax practitioners each month from the Tax Faculty and expert contributors.

Technical support
Tax Faculty image

Expert advice from the Tax Faculty's technical managers on all the developments in tax policy and practice.