From 10 October, changes have been made to the Welsh Land Transactions Tax (“LTT”) which applies to transactions in residential property in Wales. The new rates and bands apply to transactions with an effective date on or after 10 October 2022. These changes follow the changes to Stamp Duty Land Tax for residential properties in England and Northern Ireland in last month’s mini-Budget.
From 10 October 2022:-
- the starting threshold for paying main residential rates of LTT will increase from £180,000 to £225,000; and
- the first tax band will cover transactions from £225,000 to £400,000 taxed at 6%.
The tax rates and bands for higher residential rate and non-residential transactions are unchanged from those effective from 22 December 2020.