Finance Minister Rebecca Evans gave its first Budget since the pandemic today outlining the plans to increase Land Transaction Tax (equivalent to Stamp Duty) for second homeowners in Wales, including second homes and buy-to-lets.
Investment in affordable and social housing will increase to £200m, which the Government says will stimulate jobs and training while providing 3,500 additional new homes - supported by the new higher tax.
The Welsh Government will introduce a targeted tax reduction to help businesses recovering from the worst of the pandemic.
Most businesses purchasing non-residential properties costing less than £225,000 won’t pay any Land Transaction Tax, as the threshold is raised by 50%.
Finance Minister Rebecca Evans said:
“Despite the most challenging circumstances we have ever faced as a Government, I am proud to announce a budget that delivers on our values and provides sound foundations for the next administration.
“While like for like funding per person in Wales remains below 2010 levels, our priorities will steer a course for stability, protecting what matters most and creating the change that is essential to a good recovery.”
John Stewart, Deputy Policy Director for the National Residential Landlords Association said:
“This is simply unacceptable to increase the rate of additional property Land Transaction Tax in this fashion. This increase will destabilise the private rental market in Wales, increasing costs on buying homes with immediate effect. Anyone buying a new home, before they can sell their current principle residence, will have to find this extra money up front. This may also cause some transactions to collapse and cause further hold-ups for anyone caught in a chain.
“The start of a national lockdown is not the time to put additional burdens on a sector already facing some of the longest and most severe Coronavirus restrictions and will deter investment in rental properties that we so badly need.”
