- 21/12/2017
- Posted by: Lesley Griffiths MS
- Category: News
More people buying homes in Wrexham and across Wales are set to benefit from changes to Land Transaction Tax (LTT).
The Welsh Government has announced the starting threshold for the LTT, which replaces Stamp Duty Land Tax in Wales from 1st April 2018, will be set at £180,000.
It means anyone buying a home costing £180,000 or less in Wales will not pay Land Transaction Tax. By increasing the threshold at which the tax is payable, it is estimated around 65% of house sales will not be liable for tax.
The proposals will also offer first-time buyers a helping hand in getting onto the housing ladder. With the average first home costing £135,000 in Wales, it is believed around 80% of first-time buyers will not have to pay tax.
The introduction of the land transaction tax is seen as a significant milestone in Wales’ devolution journey. For the first time in almost 800 years, Wales is again responsible for raising a proportion of its own revenue to enable the Welsh Government to increase spending on public services.
In October, the Welsh Government announced the starting threshold of land transaction tax in Wales will be set at £150,000. The latest increase to £180,000 will result in even more homebuyers benefiting.
Wrexham’s Assembly Member, Lesley Griffiths, has welcomed the move and said: “Devolving certain taxation powers has granted the Welsh Government the opportunity to reshape policies to better suit the needs of the Welsh people.”
“The land transaction tax is a fairer system. It is the right approach for the Welsh housing market and will make a real difference to people’s lives, helping not just first-time buyers but all homebuyers in Wales.”