Dawn Bowden AM welcomes support for home buyers
Merthyr Tydfil and Rhymney’s local AM Dawn Bowden has welcomed new support for home buyers in Wales. The announcement of a new starting threshold for land transaction tax, will remove tens of thousands of homebuyers from paying tax. From April 1 2018, when land transaction tax replaces stamp duty land tax in Wales, the starting threshold will be £180,000.
This means anyone buying a home, including first-time buyers, costing £180,000 or less in Wales will not pay land transaction tax under the main rates of tax.
Impact on all homebuyers in Wales
- Around 65% of all homebuyers will pay no tax under the main rates.
Impact on first-time buyers in Wales
- Around 80% of first-time buyers in Wales won’t pay any tax (this is the same proportion as in England under the new stamp duty land tax relief announced by the Chancellor in the UK Budget last month – see below)
- The average first-time buyer price in Wales is around £135,000.
Dawn Bowden said “This announcement is about supporting homebuyers and helping people get on the housing ladder as well as to buy the home their family needs”
“Wales will have the most generous starting threshold for this type of property tax in the UK from April 2018”