Welsh government increases charge on some residential property purchases
The Welsh government published its Budget for 2025/26 last week. This included a number of tax announcements. What are the key points?
Wales has a devolved government with limited powers to make and amend tax law. One tax that is fully devolved is land transaction tax - the equivalent of stamp duty land tax for land and buildings physically located in Wales. The 2025/26 Welsh Budget included the announcement that higher rates, i.e. those that apply to purchases of additional dwellings by an individual (or any purchase by a company), will increase by 1% with effect from 11 December 2024. The rates, which apply to the consideration at the date of completion, are now as follows:
First £180,000 |
5% |
Next £70,000 |
8.5% |
Next £150,000 |
10% |
Next £350,000 |
12.5% |
Next £750,000 |
15% |
Remainder over £1,500,000 |
17% |
No change has been made to the Welsh rate of income tax meaning that Welsh taxpayers remain aligned with the main UK rates for at least another year.
Related Topics
-
Self-employed set for penalty reprieve
Over 1m people missed the 31 January filing deadline last week and will shortly be receiving automatic £100 penalties as a result. However, HMRC has announced that the penalty won’t be enforced for the self-employed - but only in limited circumstances. Are you eligible?
-
Can you claw back enhanced maternity/adoption pay?
If you agree to pay more than the statutory minimum during maternity/adoption leave, can you ask an employee to sign an agreement under which they agree to pay back the enhancement in certain circumstances?
-
Year-end tax saving strategies
With the 2023/24 filing deadline out of the way, it’s time to focus on maximising efficiency ahead of the end of the 2024/25 tax year. What strategies are available to individuals and owner managers