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
-
Planning ahead for pension salary sacrifice changes
From 6 April 2029, both employers and employees will be required to pay Class 1 NI on pension contributions in excess of £2,000 made through a salary sacrifice arrangement. What can you do about it?
-
Marginal relief - responding to an HMRC nudge letter
HMRC is running a campaign to clamp down on incorrect claims for corporation tax marginal relief (MR). In what circumstances might you be challenged by HMRC and how should you respond?
-
Can you claim input tax on costs linked to electric cars?
Your business intends to go green and buy new electric cars. Can you claim input tax on the purchase of the vehicles and their subsequent fuel costs? Additionally, what recent change has been announced by HMRC?