Welsh Land Transaction Tax holiday extended
Following Rishi Sunak’s announcement of the Stamp Duty Land Tax (SDLT) holiday extension at last week's Budget, the Welsh government has decided to make a similar move with Land Transaction Tax. What are the key points?
The SDLT holiday extension was one of the worst-kept secrets ahead of the 2021 Spring Budget. However, there was no indication that the Welsh or Scottish governments had any plans to announce similar extensions. The Welsh government has now done so, extending the nil rate band for Land Transaction Tax (LTT) to 30 June 2021. The extension means that no LTT will be payable on residential purchases for consideration lower than £250,000 until after that date. However, unlike the SDLT extension there will be no transitional return to the standard level, with the threshold immediately returning to £180,000 from 1 July 2021. With the holiday being worth up to £2,450, the move will certainly help those who are struggling to complete transactions before the end of March but buyers should be aware that they will need to complete, not merely exchange contracts, by 30 June 2021 to avoid the cliff-edge.
So far, there is no indication that the Scottish government will follow suit and announce an extension, though this move from Cardiff will certainly put pressure on it to do so.
Related Topics
-
CT61
-
How to apportion advisory mileage rates for EVs
In September, HMRC introduced a new two-tier advisory mileage rate for employees charging electric vehicles. The rate differs depending on whether the vehicle is charged at home or not. But what’s the correct approach if an employee does both?
-
Can flipping properties create unwelcome tax bill?
You’re planning to purchase a cheap property, refurbish it and eventually sell it on for a hefty profit. You’ve been told that as long as you live in the property, the gain is tax free, is this correct?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.