Welsh Government announces changes to rates and bands of Land Transaction Tax

Article summary

The Welsh Government has announced changes to the higher residential rates, non-residential rates and bands of Land Transaction Tax (LTT) in the draft budget. The Welsh Government has increased the higher residential rates of LTT by 1% across all bands on 22 December 2020. For non-residential property, both the zero-rate band of the tax charged for lease premiums and assignments and freehold property, and the zero-rate band of the tax charged on the rent element of non-residential leases, increased from £150,000 to £225,000. Further, on 31 March 2021, the temporary increase to the nil rate band of LTT for residential property transactions will conclude, and the original rates and starting threshold of £180,000 will take effect on 1 April 2021.