NEWS POLITICS

Homebuyers to benefit from new tax rules

People buying homes in Wales for less than £225,000 will pay no tax, under new measures announced by the Finance Minister.

2 years ago   1 minute read    1,606 views

The image for Homebuyers to benefit from new tax rules
 
Share            Listen to the story

People buying homes in Wales for less than £225,000 will pay no tax, under new measures announced by the Finance Minister.

The threshold for paying Land Transaction Tax is being increased from £180,000 and the change will come into force from 10 October. There will also be a small increase in the rate of Land Transaction Tax for homes that cost more than £345,000.

  Sign up for All About Newtown Daily

Our new free daily information email service. Sign up below by entering your email address.

The move is intended to ensure that the threshold for paying tax reflects the rise in prices of homes over the last two years.

People buying homes under £225,000 will not pay any Land Transaction Tax.

Anyone buying a home costing less than £345,000 will see a reduction in the tax they pay, up to a maximum of £1,575.

People buying homes worth more than £345,000 will see an increase – up to £550 – but these only represent around 15% of property transactions in Wales.

All other elements of Land Transaction Tax will remain unchanged, meaning there are no tax reductions provided to those purchasing second homes in Wales, unlike with stamp duty land tax in England.

Rebecca Evans, Minister for Finance and Local Government, said:

“This is a change tailored to the unique needs of the housing market in Wales and contributes to our wider vision of a fairer tax system. 61% of homebuyers will not pay tax on their purchase. These changes will get support to people who need it and help with the impact of rising interest rates.

“We also know that helping people at the lower end of the market will have a particular benefit for first time buyers. We help people buy their first home in a number of different ways, including shared ownership and help to buy schemes, and I am pleased to be able to extend that support through these changes to Land Transaction Tax.”

The changes have been brought forward as a result of changes to stamp duty land tax (paid in England and Northern Ireland) announced by the UK Government in last week’s financial statement. The Welsh Government was considering making changes at its Budget later this year, but is making changes now to give clarity to the housing market.

You've viewed 1 stories so far!

All About Newtown is an independent not-for-profit online news and information service for the town of Newtown in Mid Wales. We provide ad-free content, so rely on reader subscriptions and donations to run.

  Donate via PayPal

Related or similar stories based on this one

Image for the article Help shape the future of council tax in Wales
Help shape the future of council tax in Wales

1 year ago

Image for the article Welsh Government to consult on a 'fairer council tax' for Wales
Welsh Government to consult on a 'fairer council tax' for Wales

2 years ago

Image for the article Call to bring forward council tax shake-up rejected
Call to bring forward council tax shake-up rejected

4 months ago

Business of the Week
Cafe Glitz

Market Street

Follow us

Connect with us on Facebook, X (formerly Twitter), Instagram and Google News

     

Trending
Another dispersal order issued

2 days ago

Debunking the myths of business rates

2 days ago

New bridge delays again

2 days ago

Donate to us

We're a not-for-profit community interest company and have no corporate owners. We'd appreciate anything you can give to keep us providing free content.

  Donate via PayPal
Upcoming Events
Building Confidence with Numbers

15/11/24 11:00am

Ed Byrne - Tragedy Plus Time

15/11/24 07:30pm

Sonic Boom Live

15/11/24 10:00pm

Latest Stories
CCTV being installed to combat vandalism

18 hours ago

Newtown man pleads guilty to indecent image charges

1 day ago

Plan to split PRU in two revealed

1 day ago