“There are winners and losers from the Welsh Government’s adjustments to Land Transaction Tax (LTT) – announced before Christmas. The development will always urge property-owners to glance at the equivalent in England, which may influence some decisions. But it is vital that this contributes to recovery for the Welsh economy post-Brexit and post-Covid,”
says CLA Cymru’s Rural Surveyor, Charles de Winton.
“Businesses including shops, offices and also agricultural land see a rise in the threshold before LTT is levied as the minimum rate increases from £150,000 to £225,000. Equally there’s a welcome increase in the threshold for tax on non-residential property rent from £225,000. We hope this encourages entrepreneurs to invest and expand in Wales.”
“The temporary increase to the nil-rate for residential transactions up-to £250,000 was aimed to keep the market buoyant when the effects of the first wave of the pandemic became clear. This will revert to the previous level of £180,000 bringing more rural properties into the 3.5 per cent band.” Charles says “It will cost property-buyers over £6,000 – and inevitably this will be taken into account when negotiations take place. The remaining bands will stay as they are.”
“Those paying more are likely to be those owning more than one residential property. They may be trusts and companies – but also those investing in a second home. They’ll face a rate of as much as 4 per cent – the maximum charge for a property valued over £1.5m will be 16 per cent. These buyers might cast an eye over the English border into the Midlands for their investment.”
“LTT may play a part in influencing economic recovery, other factors need to be brought into context. Wales’ planning regime – notably how it affects rural investment plays a vital role on determining property investors’ decisions. The Welsh Government urgently needs to examine how this can promote our post pandemic recovery.”