From April 2018, Land Transaction Tax (LTT) will replace UK Stamp Duty Land Tax (SDLT) in Wales. To provide stability and reassurance to businesses and the property market initially LTT it will be consistent with the current UK tax, retaining its key elements concerning partnerships, trusts and companies, and reliefs and exemptions.
The Office for Budget Responsibility forecast that Stamp Duty receipts would rise from only £145m in 2013-14 to £231m by 2018-19 — the year when control of the tax will be devolved. Although at £170,000 the average house price in Wales is lower than UK average of £267,000, according to the latest Office of National Statistics figures there has been no proposal to lower the threshold at which tax becomes payable. This lower limit currently stands at £125,000.
Decisions on tax rates will be made closer to April 2018, including an additional rate on second homes.