Are you ready for the Welsh Land Transaction Tax?
From the 1 April, the new Land Transaction Tax (LTT) will replace stamp duty land tax in Wales.
All transactions will be subject to the new tax from Sunday, with the funds being collected by the Welsh Revenue Authority (WRA). As registration is required in order to file a transaction, the WRA suggests that conveyancers register as soon as possible for a ‘WRA online tax account – this is because the process can take up to ten working days.
This can be done online at the WRA website – which can be found here. Upon initial registration, a firm will need to set up a single account, where an account administrator will also need to be selected.
A security check will be included in the process, and firms may also need to supply postal confirmation.
After this is complete, multiple users can be set up in the account, enabling all who conduct filing with HM Courts and Tribunals service to have their own account. This will then mean that they can fill in, save and submit a LTT return as well as a certificate to be sent to HM Land Registry. When applying to the Registry to update or create title registers in Wales, they require evidence that the correct Welsh LTT has been paid.
Where the new tax is concerned, the rates and bands differ from those for stamp duty land tax – a calculator for LTT can be found at the WRA website here.