Land Transaction Tax Question

321throwaway_123

Hello, 

My partner and I are looking to buy a flat/house in Wales. I will be a first time buyer but he bought a property from the local council back in 2021, so I understand we won't be classed as FTB's as a whole. It's empty, has no fixtures and fittings and needs some building work (knock down a few walls, build an extension etc.) 
Using an LTT calculator online, we would have to pay tax of £7,200 - £8,700 on a property bought for £180,000 - £200,000 as it would be classed as a second residence.
Does the fact that the property is in it's current condition and is not our main residence (we're both registered to vote and live at our own parent's house) mean that we would qualify for some tax relief? 

Many thanks in advance and please let me know if you need more information 

_Penny_Dreadful

321throwaway_123 said:

Hello, 

My partner and I are looking to buy a flat/house in Wales. I will be a first time buyer but he bought a property from the local council back in 2021, so I understand we won't be classed as FTB's as a whole. It's empty, has no fixtures and fittings and needs some building work (knock down a few walls, build an extension etc.) 
Using an LTT calculator online, we would have to pay tax of £7,200 - £8,700 on a property bought for £180,000 - £200,000 as it would be classed as a second residence.
Does the fact that the property is in it's current condition and is not our main residence (we're both registered to vote and live at our own parent's house) mean that we would qualify for some tax relief? 

Many thanks in advance and please let me know if you need more information 

Is your partner keeping the property purchased in 2021 or selling it? 

What you intend to do with the property or its current state is irrelevant. 

user1977

The current state might be relevant if it's so uninhabitable that it doesn't count as "residential" - but I think you need a genuine wreck for that, not merely lacking fixtures etc.

321throwaway_123

_Penny_Dreadful said:

321throwaway_123 said:

Hello, 

My partner and I are looking to buy a flat/house in Wales. I will be a first time buyer but he bought a property from the local council back in 2021, so I understand we won't be classed as FTB's as a whole. It's empty, has no fixtures and fittings and needs some building work (knock down a few walls, build an extension etc.) 
Using an LTT calculator online, we would have to pay tax of £7,200 - £8,700 on a property bought for £180,000 - £200,000 as it would be classed as a second residence.
Does the fact that the property is in it's current condition and is not our main residence (we're both registered to vote and live at our own parent's house) mean that we would qualify for some tax relief? 

Many thanks in advance and please let me know if you need more information 

Is your partner keeping the property purchased in 2021 or selling it? 

What you intend to do with the property or its current state is irrelevant. 

Hi, planning on keeping it. On the WRA website is does state that there are reliefs available for property's that are in 'disrepair', they make it a bit hard to understand though 

321throwaway_123

user1977 said:

The current state might be relevant if it's so uninhabitable that it doesn't count as "residential" - but I think you need a genuine wreck for that, not merely lacking fixtures etc.

Thank you. There currently is one ceiling beam that is being held up as it is structurally unsound

Caz3121

321throwaway_123 said:

Thank you. There currently is one ceiling beam that is being held up as it is structurally unsound

have you had a structural survey? are you cash buyers or needing a mortgage? (would a mortgage be possible in it's condition?)

housebuyer143

If you call the Welsh land transaction tax department they might be able to help. There isn't a long wait for anything because no one really calls them. 

321throwaway_123

Caz3121 said:

321throwaway_123 said:

Thank you. There currently is one ceiling beam that is being held up as it is structurally unsound

have you had a structural survey? are you cash buyers or needing a mortgage? (would a mortgage be possible in it's condition?)

Hello, we did have a survey and the beam does need to be replaced, we also have the architects plans with this factored in. We're buying the new property with a mortgage (paid cash for first property) 

321throwaway_123

housebuyer143 said:

If you call the Welsh land transaction tax department they might be able to help. There isn't a long wait for anything because no one really calls them. 

Thank you!

sheramber

What will you be paying for the property.

There is no first time buyer exemption in Wales

Stamp Duty Land tax on residential hproperty  starts at £225, 000

Second home Land Tax  starts at £40,000

Is you uninhabitable property valued at more than £40,000?

321throwaway_123

sheramber said:

What will you be paying for the property.

There is no first time buyer exemption in Wales

Stamp Duty Land tax on residential hproperty  starts at £225, 000

Second home Land Tax  starts at £40,000

Is you uninhabitable property valued at more than £40,000?

Hello, 
New property will be £200,000
Uninhabitable property is £80,000

It seems I'll just have to pay up!