Land Transaction Tax Wales?? Nasty Surprise!

Jaffapig

Argh!

All info on MSE as far as I can see currently indicates I'd be exempt from stamp duty as a FTB buying a property < £300,000.

But I've just had a nasty surprise that apparently as of April 2018 in Wales a 'Land Transaction Tax' will override stamp duty and we loose that relief as FTB and will need to pay £4000 :eek:

I could cry.

Has anyone got any further info on this? I am struggling to find decent advice online (obvs will be getting a solicitor at some point) even though it's such an important thing to know! This has flown completely under my radar and now will have to take this money out of my deposit

Pixie5740

Jaffapig wrote: »

Argh!

All info on MSE as far as I can see currently indicates I'd be exempt from stamp duty as a FTB buying a property < £300,000.

But I've just had a nasty surprise that apparently as of April 2018 in Wales a 'Land Transaction Tax' will override stamp duty and we loose that relief as FTB and will need to pay £4000 :eek:

I could cry.

Has anyone got any further info on this? I am struggling to find decent advice online (obvs will be getting a solicitor at some point) even though it's such an important thing to know! This has flown completely under my radar and now will have to take this money out of my deposit

The change was announced last year and you're right, MSE does need to update the SDLT information on the main site to take into account the taxation change in Wales.

https://www.geldards.com/welsh-government-announce-land-transaction-tax-rates-and-bands.aspx

You can calculate the LTT here:

https://beta.gov.wales/land-transaction-tax-calculator

Jaffapig

Thankyou Pixie5740.

I'm afraid I have treated MSE as gospel and this has really pulled the rug from under me right now. We've pushed ourselves to the further end of the affordability and this is upsetting news.

Pixie5740

I suppose in MSE's defence if you were to complete on or before 31st March 2018 you wouldn't pay and SDLT because the new LTT for Wales hasn't come into force yet. Still a kick in the baws though if you weren't aware of the changes.

Jaffapig

Pixie5740 wrote: »

I suppose in MSE's defence if you were to complete on or before 31st March 2018 you wouldn't pay and SDLT because the new LTT for Wales hasn't come into force yet. Still a kick in the baws though if you weren't aware of the changes.

Indeed. Sadly I can't complete in the next two days :rotfl: vendors don't have a house to move to yet! Feeling thoroughly kicked lol.

Crashy_Time

Four thousand quid is pushing you to your financial limit? What are you going to do about repairs on your house, say a boiler breaks down or something?

Jaffapig

No I don't mean our limit. But the amount we've gone to balancing our deposit and mortgage is where I am comfortable with.

I don't really want a larger mortgage due to anything unforeseen in the future/significant interest rate rises so it will have to come out the emergency fund or deposit. I quite liked having the emergency fund in case boiler or car dies after house purchase so I'm less keen to dip into it. I will have to come to some decision on it...

ProDave

Isn't devolution a wonderful thing.

Westminster tries to make things more fair and affordable, and the local assembly is having none of it.

Use pour vote at the next assembly elections caarefully.

Jaffapig

As an Englishwoman living in Wales I'd get beheaded for uttering such Blasphemy

xylophone

Use pour vote at the next assembly elections caarefully.

Cold water on the sheep?:)

Jaffapig

I'm both appalled and impressed it's only taken us 10 posts in this thread to get to a sheep joke :rotfl: