It’s been announced that the stamp duty waiver for first-time buyers will not apply in Wales from April 2018.
The tax was abolished in October’s Budget Statement by Chancellor Philip Hammond, who clarified that it would not have to be paid by first-time buyers purchasing a property worth up to £300,000. Those buying a home at £500,000 would also not have to pay stamp duty on the first £300,000.
However, the Welsh Finance Secretary Mark Drakeford has confirmed that in Wales, the threshold will rise to £180,000, a figure which is £120,000 less than the new first-time buyer rate in England.
Rather than just applying to those taking their first steps onto the property ladder, Drakeford clarified that this threshold would apply to all home buyers, claiming that around 65% of Welsh house sales would incur no tax under the new plans.
This will mean that Land Transaction Tax will not be paid by buyers purchasing a home worth up to £180,000. For purchases above £180,000 but under £250,000, the tax rate will be at 3.5%, rising to 5% for those between £250,000 and £400,000. Home worth between £400,000 and £750,000 will be taxed at a rate of 7.5%.
Mr Drakeford pledged his support for the plans, stating that “the changes will benefit more buyers than the chancellor’s targeted relief for first-time buyers.”
