The Welsh government has confirmed that its residential sales stamp duty holiday is to end on March 31st and also revealed a tax raid on landlords effective tomorrow.
Its announcement is likely to weaken the argument for Rishi Sunak to extend England’s stamp duty holiday, but the Welsh government’s raid on landlords has proved more controversial.
In Wales LTT is charged at a higher rate for properties that are not purchased as a main home – e.g. second homes and buy-to-let properties.
This is different to England where second homes stamp duty is bolted on at a uniform 3%.
In Wales it’s 3% up to £180,000, 6.5% on the portion up to £250,000, 8% on the slab up to £400,000, 10.5% up to £750,000, 13% up to £1.5 million and 15% on anything over that.
But after tomorrow all these rates are to each rise by 1%. This means a landlord buying a £300,000 property in Wales will pay an extra £3,500 in LTT or £16,900.
“This is simply unacceptable to increase the rate of additional property LTT in this fashion,” says John Stewart (pictured), Deputy Policy Director for the National Residential Landlords Association said.
“This will destabilise the private rental market in Wales, increasing costs on buying homes with immediate effect.
“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.”