There’s been a shock one per cent increase in the Welsh equivalent of stamp duty on second homes, coming into effect tomorrow.
The move aims to raise £13m for new social housing and means second home-owners paying a four per cent levy when they buy homes up to £180,000, rising to 16 per cent for homes worth £1.6m or over.
The change to Land Transaction Tax - the Welsh version of stamp duty - comes into effect tomorrow.
The move is part of the Welsh Government's budget for 2021-22 and comes just two days after Wales entered its latest Coronavirus lockdown.
A statement from the Welsh Government this evening says: “If you complete on buying a property before 22 December you pay the previous rates of tax - on or after 22 December you pay the new rates of tax. In most cases where you have already exchanged contracts, but not completed you will be able to use the previous higher rates.”
The first reaction has come from John Stewart, deputy policy director of the National Residential Landlords Association.
He says: “This is simply unacceptable to increase the rate of additional property Land Transaction Tax in this fashion. This increase will destabilise the private rental market in Wales, increasing costs on buying homes with immediate effect. Anyone buying a new home, before they can sell their current principle residence, will have to find this extra money up front. This may also cause some transactions to collapse and cause further hold-ups for anyone caught in a chain.
“The start of a national lockdown is not the time to put additional burdens on a sector already facing some of the longest and most severe Coronavirus restrictions and will deter investment in rental properties that we so badly need.”
The Welsh Government has announced that from April 2018, Stamp Duty...
The Welsh Government has set out the new levels of stamp...
One of the country’s leading politicians says a yet-to-be-revealed way of...
The Conservatives have promised that first time buyers would not pay tax...
The predictions game can be tricky. Sometimes you just don’t know...
Leading UK property auctioneer Bond Wolfe has broken through the £100...
Uncertainty triggered by the new Labour Government and taxation concerns that...
In today's rapidly evolving property market, the focus on reducing transaction...
.png)
An exciting new collaboration between TVPN, EstateApps and Paul Long is...
By Mike Bilboe, Face For Business Buying or selling a home can...
LSL Estate Agency Franchising is home to one of the UK’s...
.jpg){kind=logo}
B-hive Block Management Partners Celebrates Major Milestone With Over 100 Businesses...
.jpg)
Tell us a little bit about National Home Move. We are a...
.png)
Who are you and what does it say on...
Who are you and what does it say on...
Who are you and what does it say on...
Join the conversation
Jump to latest comment and add your reply
This is changing a law retrospectively, which is against The Law.
Words can’t describe
If you can't use words how else can you describe anything? Semaphore doesn't work on this site! Tee-Hee. Merry Christmas.
the grab has begun
Scotland will catch up probably.
Had the 4% in Scotland for a while now. Was brought in to allow first time buyers get on the ladder and discourage landlords but has made absolutely no difference. Re more social housing... still a massive shortage.
Incredible decision, to do this at a days notice is disgusting. There are vendors involved in chains with those buying seconds homes/btl who need to move for essential reasons but will now feel the effect of this. We are already seeing buying decisions affected.
How can anyone be surprised by this. How else do governments claw back the enormous cost of Covid? Tax rises are coming in every sector. We need to get used to it.
Please login to comment