The Welsh Government have announced in their draft budget today changes to the higher residential rates, non-residential rates and bands, and confirmed the temporary increase to the nil rate band will end on 31 March 2021. That rate will revert to the original rates and starting threshold of £180,000 on 1 April 2021.
The higher residential rates of LTT will increase by one per cent across all bands on 22 December 2020. If the buying of a property is completed:
• before 22 December, the previous rates of tax are paid
• on or after 22 December the new rates apply
In most cases where contracts have already been exchanged, but not completed the previous rates will be able to be used. Paying LTT will not apply if the property is purchased for less than £250,000 (and no other property is owned).
Higher LTT rates are usually paid when both of the following apply:
a residential property is purchased worth £40,000 or more and the purchaser already owns one or more other properties.
Contact us for further advice or you can read the announcement in full here