Stamp Duty In Wales

Stamp Duty Terms

When you buy property or land in the UK, you have pay tax depending on many variables. Generically the term “stamp duty” is used for such tax but in fact this term is now only used for the relevant tax in England and Northern Ireland (the full title is Stamp Duty Land Tax. (SDLT))

In Wales it’s called Land Transaction Tax (LTT)  For completeness in Scotland it goes by the name of Land and Buildings Transaction Tax (LBTT) with Additional Dwelling Supplement (ADS).

Ltt Rates

Wales

The current LTT rates have been temporarily reduced until 31 March 2021, the so called Stamp Duty Holiday. Therefore the current LTT rates to 31 March 2021 are as follows, depending on whether it is a single or additional Property:

Single Property Additional Property

 

Wales

 

 

Up to £250,000                   0%

£250,001 to £400,000         5%

£400,001  to £750,000       7.5%

£750,001  to £1,500,000    10%

The remaining amount       12%

 

 

Up to £180,000                   3%

£180,001  to £250,000        6.5%

£250,001 to £400,000         8%

£400,001  to £750,000       10.5%

£750,001  to £1,500,000    13%

The remaining amount       15%

No stamp duty is payable if the property is less than £40,000.

How Do Ltt Rates In Wales Compare To Rates In England/Northern Ireland And Scotland?

We thought the best way to analyse the rates would be to see how much LTT you would actually pay for the same price points compared to stamp duty in the rest of the UK. Please see below:

Wales (LTT)

                £ 

England/Northern Ireland (SDLT)

               £

Scotland (LBTT)

           £

£100,000 

Single Property

 

                 0       0      0
£100,000 

Additional Property

 

3,000 3,000 4,000
£250,000 

Single Property

 

0 0 0
£250,000 

Additional Property

 

9,950 7,500 10,000
£500,000 

Single Property

 

15,000 0 21,250
£500,000 

Additional Property

 

32,450 15,000 41,250
£750,000 

Single Property

 

33,750 12,500 46,250
£750,000 

Additional Property

 

58,700 35,000 76,250
£1,000,000 

Single Property

 

58,750 28,750 76,250
£1,000,000 

Additional Property

 

91,200 58,750 116,250
£2,000,000 

Single Property

 

168,750 138,750 196,250
£2,000,000 

Additional Property

 

231,200 198,750 276,250

What we can ascertain from this table is that in terms of LTT, the stamp duty a buyer would pay is a lot more than if buying the same priced property in England and Northern Ireland. But generally speaking it is cheaper than in Scotland.

Wales

Most properties are less than £500,000 rather than above this figure. If you buy a family home in Wales at £500,000 in Wales, you would pay £15,000 in LTT. But if you bought one at the same price in England or NI you would pay nothing. It seems Wales may be getting a raw deal here, notwithstanding the fact that properties on average cost more in England. The only comfort I suppose is that Wales in cheaper than Scotland. For the same price, buyers in Scotland would pay £21,250.

Where the differences are very apparent is if you buy a second property. And additional property in England at £500,000 would create a £15,000 tax bill. But in Wales it would be a whopping £32,450

Conclusion

Although LTT presently seems cheaper, it is a lot more expensive than stamp duty in England and Northern Ireland.

If you would like to sell your property in Wales, please do contact Quick Property Buyer for an instant cash offer.

News Reporter