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Land Transaction Tax is payable by the purchaser in a land transaction which occurs in Wales. At Pinfields, we can provide guidance on Land Transaction Tax in the Worcestershire area.
Land Transaction Tax (LTT) is payable by the purchaser of property in Wales.
LTT is payable by the purchaser of residential or non-residential property in a land transaction occurring in Wales. Stamp Duty Land Tax (SDLT) is payable on land transactions in England and Northern Ireland and Land and Buildings Transaction Tax (LBTT) on land transactions in Scotland.
A transaction will trigger liability to LTT if it involves the acquisition of an interest in land. This will include a simple conveyance of land, such as buying a house, creating a lease or assigning a lease.
LTT is operated by the Welsh Revenue Authority (WRA), and individuals who are liable to the tax must complete and submit an LTT return (see later).
Individuals must send an LTT return and pay the tax due to the WRA within 30 days of the day after completion (or other effective date of the transaction). Penalties and interest may be charged if you fail to file your LTT return or pay the necessary tax within the 30 days after the day of completion.
In some circumstances, the acquirer is not required to send a LTT return or pay LTT. These include instances where:
For cross-border cases, a home buyer will only be required to pay SDLT on the English part of the transaction and LTT to the WRA for the Welsh part of the transaction.
Non-residential rates applicable from 22 December 2020:
The Welsh government changed the rates and bands on residential properties with effect from 10 October 2022 however there was no change to purchases of additional properties including buy to let and second homes. The residential rates shown in the table below apply from 10 October 2022:
The higher rates for the purchase of a second or subsequent residential property from 22 December 2020 are:
Unlike SDLT and LBTT, LTT does not provide any relief for first-time homebuyers in Wales.
If you are in the Worcestershire area and are planning to enter into an arrangement to purchase land, we can advise you of the precise impact of LTT on the transaction, so please contact us.