The Welsh government has announced that the land transaction tax threshold for home buyers will increase from £180,000 to £250,000 from July 27.
It means that someone buying for up to £250,000 could save 3.5 per cent or a maximum of £7,500.
Just like the stamp duty holiday for home buyers in England, the changes to LTT in Wales will apply until March 31.
There will be no change to the higher rate tax paid for buyers purchasing a second or subsequent property in addition to their main home.
This is in contrast to England, where the temporary stamp duty changes will also benefit those buying investment properties and second homes by reducing, but not eliminating their tax bill.
Prior to the changes announced by the Welsh government and up until the new structure comes into force on July 27 the land transaction tax thresholds for people buying a main residence are as follows:
| The portion up to and including £180,000 | 0% |
| The portion over £180,000 up to and including £250,000 | 3.5% |
| The portion over £250,000 up to and including £400,000 | 5% |
| The portion over £400,000 up to and including £750,000 | 7.5% |
| The portion over £750,000 up to and including £1,500,000 | 10% |
| The portion over £1,500,000 | 12% |
The new tax thresholds for those buying a main residence from July 27 to March 31, 2021 are as follows:
| The portion up to and including £250,000 | 0% |
| The portion over £250,000 up to and including £400,000 | 5% |
| The portion over £400,000 up to and including £750,000 | 7.5% |
| The portion over £750,000 up to and including £1,500,000 | 10% |
| The portion over £1,500,000 | 12% |
The the higher rate thresholds for those buying additional properties will remain as follows:
| The portion up to and including £180,000 | 3% |
| The portion over £180,000 up to and including £250,000 | 6.5% |
| The portion over £250,000 up to and including £400,000 | 8% |
| The portion over £400,000 up to and including £750,000 | 10.5% |
| The portion over £750,000 up to and including £1,500,000 | 13% |
| The portion over £1,500,000 | 15% |
