Wales: Land transaction tax (LTT)—the basics
Produced in partnership with Andrew Evans of Geldards LLP
Wales: Land transaction tax (LTT)—the basics

The following Tax guidance note Produced in partnership with Andrew Evans of Geldards LLP provides comprehensive and up to date legal information covering:

  • Wales: Land transaction tax (LTT)—the basics
  • Background
  • Commencement and transitional provisions
  • Administration
  • Rates and structure of LTT
  • Key concepts
  • Land transaction
  • Effective date
  • Chargeable consideration
  • Leases
  • more

This Practice Note provides an overview of land transaction tax (LTT) which replaced stamp duty land tax (SDLT) in Wales with effect from 1 April 2018. Three other Practice Notes focus in more detail on particular aspects of the tax:

  1. Wales: Land transaction tax (LTT)—chargeable consideration and rates of LTT

  2. Wales: Land transaction tax (LTT)—particular transactions and tax payers, and

  3. Land transaction tax (LTT)—administration and compliance

Background

The Wales Act 2014 contains provisions for the disapplication of SDLT in Wales from 1 April 2018 and the ability for Welsh Government to introduce its own tax on transactions in land in Wales.

Legislation for LTT is contained in the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (LTTADT(W)A 2017) which received Royal Assent on 24 May 2017. Legislation for the administration of taxes in Wales and the formation of the Welsh Revenue Authority (WRA) is contained in the Tax Collection and Management (Wales) Act 2016 (TCM(W)A 2016) which received Royal Assent on 20 April 2016. Statutory references are to the LTTADT(W)A 2017 unless stated otherwise.

Welsh Government undertook extensive consultation with stakeholders regarding the implementation of LTT. One key message of stakeholders was to retain as much as possible of the elements of the SDLT regime. Therefore, SDLT practitioners will feel ‘at home’ with much of LTT.

Commencement