New Welsh Land Transaction Tax Receives Royal Assent
A new Land Transaction Tax (LTT) is set to replace Stamp Duty Land Tax (SDLT) in Wales, with effect from April 2018.
The legislation is similar to the existing UK SDLT legislation, and the new LTT will be payable by the purchaser when buying or leasing a building or land, in line with a series of set rates and bands.
Higher rates of tax will apply to purchases of additional residential properties, as is currently the case, but there are some additional rules.
The new LTT marks the latest step in the drive towards tax devolution, which has seen the introduction of the Land and Buildings Transaction Tax (LBTT) in Scotland, and the Scottish Rate of Income Tax.
The proposed rates and bands for the LTT are set to be announced by October 2017. The Welsh Revenue Authority (WRA) will be responsible for the collection and management of the LTT from April 2018.
For more information on the Land Transaction Tax please contact our tax team.
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.