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Purchasing in Wales - Stamp Duty/LTT

biged670
biged670 Posts: 408 Forumite
First Anniversary Combo Breaker First Post
in House buying, renting & selling
Hello,

I was just looking for some information regarding purchasing a property in Wales and stamp duty/Land Transaction Tax.

My understanding is that on the back on the Autumn budget, stamp duty was abolished for first time buyers up to £300k. I have today seen information that the Welsh Gov are introducing their own 'Land Transaction Tax' from April 1st 2018, and the 0% threshold for this is £150k.

Am I right in thinking that to receive the actual benefit from the Chancellor’s budget, if purchasing a property in Wales, you would need to do so by April 1st 2018, otherwise thereafter the Welsh Government LTT applies?
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Comments

  • davidmcn
    davidmcn Posts: 23,596 Forumite
    Name Dropper First Anniversary First Post
    biged670 wrote: »
    Am I right in thinking that to receive the actual benefit from the Chancellor’s budget, if purchasing a property in Wales, you would need to do so by April 1st 2018, otherwise thereafter the Welsh Government LTT applies?
    Generally speaking yes, I would expect the Welsh regime would apply. There'll be transitional arrangements if you're already in a contract which completes after 1 April.
  • biged670
    biged670 Posts: 408 Forumite
    First Anniversary Combo Breaker First Post
    davidmcn wrote: »
    Generally speaking yes, I would expect the Welsh regime would apply. There'll be transitional arrangements if you're already in a contract which completes after 1 April.

    Thanks, the joys of living in Wales!
  • biged670
    biged670 Posts: 408 Forumite
    First Anniversary Combo Breaker First Post
    Hi all, has anybody found any further information regarding the 'grace period' for ongoing transactions that will go past 1st April?
  • gettingtheresometime
    gettingtheresometime Posts: 6,911 Forumite
    First Anniversary Name Dropper First Post I've been Money Tipped!
    edited 17 January 2018 at 5:12PM
    Bear in mind that 01/04/18 is Easter Sunday
  • biged670
    biged670 Posts: 408 Forumite
    First Anniversary Combo Breaker First Post
    Ours is a strange one, we're due to exchange contracts before 01/04 but completion will definitely be after. Just wondering if anything has been annouced regarding situations like this.
  • SDLT_Geek
    SDLT_Geek Posts: 2,491 Forumite
    First Anniversary First Post Name Dropper
    Land Transaction Tax is now to start at £180,000. It is not to have a first time buyers' relief.


    We await more transitional provisions, but generally speaking we know that for a transaction completing on or after 1 April 2018, for SDLT to apply rather than LTT, contracts need to have been exchanged before 17 December 2014. See Wales Act 2014 s16(4).
  • biged670
    biged670 Posts: 408 Forumite
    First Anniversary Combo Breaker First Post
    SDLT_Geek wrote: »
    Land Transaction Tax is now to start at £180,000. It is not to have a first time buyers' relief.


    We await more transitional provisions, but generally speaking we know that for a transaction completing on or after 1 April 2018, for SDLT to apply rather than LTT, contracts need to have been exchanged before 17 December 2014. See Wales Act 2014 s16(4).

    Please keep me posted with any information you may find out.
  • davidmcn
    davidmcn Posts: 23,596 Forumite
    Name Dropper First Anniversary First Post
    biged670 wrote: »
    Please keep me posted with any information you may find out.
    Your solicitor should be fully aware of what's going on anyway (unless this is the only purchase they're doing in Wales!).
  • biged670
    biged670 Posts: 408 Forumite
    First Anniversary Combo Breaker First Post
    davidmcn wrote: »
    Your solicitor should be fully aware of what's going on anyway (unless this is the only purchase they're doing in Wales!).

    I've queried with them, they are waiting for further guidance from the Welsh Gov.
  • crystalpinks
    crystalpinks Posts: 56 Forumite
    First Anniversary
    Also keeping an eye on this as hoping to exchange before April but complete after!
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