Latest News

Changes to the rates and bands of Land Transaction Tax

Date Posted: 22 December 2020
 

Changes to the rates and bands of Land Transaction Tax

 

On 21 December 2020, the Welsh Government announced changes to the higher residential rates, and non-residential rates and bands, of Land Transaction Tax (LTT). The temporary increase to the nil rate band of LTT for residential property transactions will end on 31 March 2021.

 

LTT will increase by 1% across all bands on 22 December 2020

 

View Welsh Government website

 

 

Changes for higher rates residential property

 

The higher residential rates of LTT will increase by 1% across all bands on 22 December 2020.

If you complete on buying a property:

  • before 22 December you pay the previous rates of tax
  • on or after 22 December you pay the new rates of tax

In most cases where you have already exchanged contracts, but not completed you will be able to use the previous higher rates.

higher rates quick guide

 

 

Changes for non-residential property

 

On 22 December 2020:

  • the zero-rate band of the tax charged for lease premiums and assignments, and freehold property transfers will increase from £150,000 to £225,000
  • the zero-rate band of the tax charged on the rent element of non-residential leases will increase from £150,000 to £225,000

The Welsh Government have also announced that they intend to increase the 'relevant rent' amount for the annual rent element of non-residential rents from £9,000 to £13,500 in February 2021.

 

 

End of temporary reduction period

 

The Welsh Government have confirmed that the temporary increase to the nil rate band of LTT for residential property transactions will end on 31 March 2021. This means on 1 April 2021, these rates will revert to the original rates and starting threshold of £180,000. You must complete your purchase before this date to use the temporary reduction rates.

 

* Information obtained from the Welsh Government website.

 

 

Follow HRT for all of our updates, features and properties!

 

Follow us on Instagram →

 

arrow_upward