New bill for Welsh property tax published
The issue of stamp duty tax is one that has been in the press a lot recently, mainly because of the stamp duty reforms introduced by the previous Chancellor George Osborne in December 2014, and because people buying a second property (such as landlords) would have to pay an extra 3% on top of the current level of stamp duty tax they’d have to pay on just one property. Now, the issue of stamp duty in Wales has been raised, in particular the issue of stamp duty land tax.
In early September, the Welsh Government published a bill that will establish a new Land Transaction Tax to replace the current stamp duty land tax in Wales from April 2018. The Welsh Government hopes that the new Land Transaction Tax, along with the Anti-avoidance of Devolved Taxes Bill, will send a strong warning to land and property owners in Wales that tax avoidance will not be accepted.
What is Land Transaction Tax?
The Land Transaction Tax will replace UK Stamp Duty Land Tax in Wales from April 2018, and like the previous tax system, will be payable when a landlord buys or sells a property or section of land over a certain price, although the price thresholds haven’t been announced yet. The Welsh Government is expected to reveal the tax rates closer to April 2018 to ensure that they better reflect the economic conditions at that time.
The government has revealed that the Land Transaction Tax will likely affect a broad range of people, including, but not limited to: property buyers and sellers, landlords, businesses such as builders, property management companies and letting/estate agents; solicitors and conveyancers are also likely to be affected.
The new legislation, which officials have called the longest piece of legislation ever drafted by Welsh ministers, is expected to be consistent with the Stamp Duty Land Tax to ensure that businesses and individuals can benefit from stability and provide the property market with reassurances and support.
Government ministers have also said that the new higher rates of Stamp Duty Land Tax on additional residential properties will be taken under consideration as part of the new Legislation for Landfill Tax that is expected to be published before the end of the year.
The new Land Transaction Tax was introduced into the National Assembly on 12 September 2016, and is expected to receive Royal Assent by spring next year. If all goes to plan, the Land Transaction Tax legislation is expected to be launched in April 2018.
Here at CPS Homes, our lettings and sales teams are experts on everything property, so if you have any questions about stamp duty or the proposed Land Transaction Tax, please do let us know and we’ll do our best to alleviate your concerns. We can also help if you’re looking to buy, sell, rent or invest in Cardiff property. As one of the city’s largest letting and estate agents, we have the experience and knowhow to make your dreams come true. To find out more, or to browse through our entire range of properties for sale or rent, please get in touch today on 02920 668585 or email enquiries@cpshomes.co.uk.
The information contained within this article was correct at the date of publishing and is not guaranteed to remain correct in the present day.
