Most home buyers in Wales will not pay The hip after the tax overhaul, but those buying more expensive properties will pay hundreds of pounds more.
The Welsh Government will raise the nil rate threshold for land transaction tax, the country’s equivalent of stamp duty, from £180,000 to £225,000 after it was changed in England and Northern Ireland in the mini-budget.
Anyone buying a property below this threshold will pay no tax, while those buying a home worth less than £345,000 will benefit from tax savings of up to £1,575.
The Welsh Government has estimated that the reform will save 61 per cent of buyers from paying tax on their purchase. None of the changes apply to holiday homes, and they will come into effect on October 10.
But anyone buying a home worth more than £345,000 will be hit with a “small increase in tax”, it confirmed.
The current system imposes 3.5% tax on the proportion of a property’s price that falls between £180,000 and £250,000, and 5% tax on the value between £250,000 and £400,000. But after October 10, the tax on the price of a property between £225,000 and £400,000 will rise to 6 per cent.
The Welsh Government has announced that buyers buying homes worth more than £345,000 will face a tax increase of up to £550.