Extra stamp duty clobbering Welsh landlords with £92 million extra tax take

admin    Uncategorized     agents

Landlords and holiday homeowners continue to be clobbered by a tax grab from the Welsh Revenue Authority.

The latest figures show revenue from the higher rate of stamp duty – Land Transaction Tax (LTT) – increased by 50% from £61 million in 2020/21 to £92 million in 2022/23 – albeit down from £97 million the previous year.

The Welsh government caused outrage among landlords after it hiked stamp duty by 1% for anyone buying a property that is not their principal residence including second homes and buy-to-let properties in December 2020.

New data reveals a total of 59,560 transactions for LTT from April 2022 to March 2023, which pocketed the authority £287 million for residential transactions. This included £92 million additional revenue raised from higher rates and £95 million tax due for non-residential transactions.

Reduced

Adam Al-Nuaimi (pictured), head of data and analysis, says there was a marginal increase in residential LTT revenues despite lower numbers of transactions towards the end of the financial year, which was likely to have been influenced by wider economic conditions.

He adds: “In the year to March, we have seen reduced activity for residential higher rates in some areas of Wales, particularly in some of the western or northern areas.

“Possible reasons for this could include the impact of wider economic conditions or second homes policies beginning to impact upon transactions.”

The maximum level at which local authorities can set council tax premiums on second homes and long-term empty properties was increased to 300% in April as a way to help people find a home where they grew up.

Read more about LTT rates in Wales.

View Full Article: Extra stamp duty clobbering Welsh landlords with £92 million extra tax take

If you enjoyed this article please consider sharing it!