STAMP DUTY TO RISE IN 2018!

STAMP DUTY TO RISE IN 2018

Anyone thinking of buying or selling in the New Year may want to act sooner rather than later to avoid the forthcoming introduction of Land Transaction Tax.

Wales will see huge changes to the stamp duty regime from 1 April 2018 with Land Transaction Tax replacing Stamp Duty. As ever, there will be winners and losers with some buyers in Wales having to pay more than their counterparts in England.

For example, someone buying a £500,000 home in Wales will pay £17,500 in Stamp Duty, compared with £15,000 in England. On a £600,000 home, the bill in Wales would be £25,000, compared with £20,000 in England. And on a £750,000 house, the Stamp Duty in Wales would be £36,250, compared with £27,500 in England.

It is homes worth over £750,000 that the Stamp Duty is really set to climb in Wales, to 10%. Properties above £1.5m will attract a new rate of 12%.

However, buyers of small homes worth under £250,000 will pay up to £500 less in Stamp Duty, and those buying at up to £150,000 will escape the tax altogether. That has to be good news!

For information, the current rates as of November 2017 are:

• Up to £125,000 = no tax

• Between £125k and £250k = 2%

• Between £250k and £925k = 5%

• Between £925k to £1.5m = 10%

• Above £1.5m = 12%

The new rates in Wales from 1 April 2018 will be:

• Up to £150,000 = no tax

• Between £150k and £250k = 2.5%

• Between £250k and £400k = 5%

• Between £400k and £750k = 7.5%

• Between £750k to £1.5m = 10%

• Above £1.5m = 12%

By PJC Homes on November 7th, 2017