The new stamp duty regime

Including changes to stamp duty in Wales and Scotland.

Call: 028 9038 2637 or Email: accountants@michaelhunterandcompany.co.uk

Wales will introduce its new stamp duty land tax (SDLT) equivalent, the Land Transaction Tax (LTT), from 1 April 2018. The new LTT preserves the underlying structure of SDLT, but also includes some key differences, such as the application of higher rates of duty for some residential properties with a higher value. The LTT rates applying from 1 April 2018 are:

Residential

Consideration (£) Rate (%)
Up to 180,000 0
180,001 - 250,000 3.5
250,001 - 400,000 5
400,001 - 750,000 7.5
750,001 - 1,500,000 10
Over 1,500,000 12

Non-residential

Consideration (£) Rate (%)
Up to 150,000 0
150,001 - 250,000 1
250,001 - 1,000,000 5
Over 1,000,000 6

Residential rates may be increased by 3% where further residential properties are acquired.

Scotland already has its own SDLT equivalent, the Land and Buildings Transaction Tax (LBTT). In the Scottish Draft Budget, the Scottish Finance Secretary, Derek Mackay, confirmed that the LBTT rates will remain the same for the 2018/19 tax year. However, the Scottish government is planning to introduce a new relief for first-time buyers of properties up to £175,000.   

In the 2017 Autumn Budget, Chancellor Philip Hammond unveiled a new exemption from stamp duty land tax (SDLT) for first-time homebuyers in England, Wales (until 1 April 2018) and Northern Ireland. From 22 November 2017, most first-time buyers paying £300,000 or less for a residential property are no longer required to pay SDLT. Wales has no plans to introduce a relief from LTT for first-time buyers.

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