This is a reminder that as from 1 April, HM Revenue and Customs will no longer be responsible for collecting Stamp Duty (SDLT) on property transactions in Wales. A new body – The Welsh Revenue Authority (WRA) – will instead be collecting what they have called Land Transaction Tax (LTT). The WRA has also announced the thresholds, which outline that the majority of first time buyer transactions for residential property will now fall under the LTT threshold. However, those buying residential property in Wales in excess of £400,000 are likely to pay higher rates of LTT than would have applied if the purchase had been subject to SDLT.
Whilst there have been some changes from the SDLT legislation, all changes have been made to either: simplify the tax; make it fairer; improve its efficiency and effectiveness; or to enable a focus on Welsh needs and priorities.
Like SDLT, LTT will be payable when your clients buy or lease a building or land above a certain price. It may affect house buyers and sellers and businesses including builders, property developers and agents involved in the transaction process.
However, house builders and investors holding property portfolios which span across the whole of the UK will now arguably face greater administrative and compliance issues in the form of three separate systems of UK land transaction taxes for themselves and their conveyancers to tackle during cross-jurisdiction transactions.
Conveyancers are faced with further problems with regards to land that covers both England and Wales or when a transaction encompasses a property in England and another in Wales. In this case, both SDLT and LTT will be due.
If you require assistance ensuring your clients’ transactions follow LTT compliance, Griffiths Allen’s experienced advisors are here to help lessen the burden. It is of vital importance that all the correct codes are used in both SDLT and LTT transactions to ensure correct compliance.
For help or advice on LTT, please contact our specialist advisors on 0118 40 50 025 or visit our website at www.griffithsallen.co.uk .
Griffiths Allen provides Stamp Duty Land Tax (SDLT) and Land Transaction Tax (LTT) advice and compliance services to the residential conveyancing profession, as well as professionals involved in commercial property transactions.