New Stamp Duty tax rates announced for Wales

The Land Transaction Tax – the first Welsh-only tax for 800 years - will replace Stamp Duty from 1st April 2018.

Whilst the reviews signal good news for 90% of buyer in Wales – where average house prices of £150,000 mean that many transactions will now fall below the stamp duty rates - some will find themselves with a hefty bill to shoulder, paying thousands of pounds more than they would do for a pound-for-pound property in England.

The changes are:

Current:

• Up to £125,000: No tax
• Between £125,000-£250,000: 2%
• Between £250,000-£925,000: 5%
• Between £925,000-£1.5m: 10%
• Above £1.5m: 12%

New rates:

• Up to £150,000: No tax
• Between £150,000-£250,000: 2.5%
• Between £250,000-£400,000: 5%
• Between £400,000-£750,000: 7.5%
• Between £750,000-£1.5m: 10%
• Above £1.5m: 12%

Of course, the additional 3% stamp duty levied against anyone buying additional properties still applied to the new rates – no changes there!