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
-
HMRC publishes penalty guidance for MTD IT
HMRC has published guidance on how penalties will apply under Making Tax Digital for Income Tax (MTD IT). With mandation approaching from April 2026, what do you need to know about the new regime?
-
Company car calculator
Want to know the amount of the benefit you will be taxed on by taking a company car? Easily work that out with our tool, you can even see what difference making a contribution to the cost of the car will have.
-
Pension relief calculator
Sometimes the tax relief you get on a pension is easy to work out, and sometimes it isn’t. Let our calculator do it for you and show the effect on your pension fund.