Property experts from two of Wales’ leading professional service firms will outline what implications the new Land Transaction Tax (LTT) will have for the sector at an event on Thursday 30 November.
Taking place at the Mercure Holland House Hotel in Cardiff, Andrew Campbell from Clarke Willmott LLP and Adrian James from Bruton Knowles LLP will provide an overview of the new regulations that are set to come into force across Wales in April 2018.
The new LTT is replacing the UK-wide Stamp Duty Land Tax (SDLT) and is the first new tax in Wales for almost 800 years. It forms part of the Welsh Government’s devolved powers to take more control of the laws for the country.
Payable when you buy or lease a building or land over a certain price, the new LTT will affect house buyers and sellers and businesses including builders, property developers and agents involved in the transaction process.
The idea behind the new LTT is to simplify the tax and make it fairer, improve its efficiency and effectiveness and focus on Welsh needs and priorities.
Adrian will consider barriers to development in a planning and legislative context, whilst acknowledging government policy, costs and barriers, and promotion options for landowners while Andrew will look at the differences between the Welsh LTT and SDLT from a commercial perspective, whilst also considering any implications which arise from the Government's Budget Speech on 22nd November.
With SDLT raising £170 million in Wales, getting the new bands right will be an area of great interest especially as £105 million was generated from residential property transactions.
Adrian from Bruton Knowles said: “Following the release of the new bands, the Welsh Government has adopted a marginal rate structure for residential property transactions so the new LTT falls predominantly on those towards the higher end of the wealth distribution.
“The intention is for LTT to be progressive so that a higher rate of tax is paid by those who are involved in more expensive property transactions.
“The important consideration is that the new rates take into account and provide a proper balance between key interests namely those of taxpayers, the property market and the Welsh economy.”
Andrew from Clarke Willmott added: “The new LTT will impact those beyond buying and selling property such as conveyancers, solicitors, estate agents, surveyors and removal firms.
“Any large differences between the old SDLT and new LTT may have an impact on the number of property transactions which occur, their prices and potentially economic activity.
“If for example the new LTT means fewer transactions then their level of work could be impacted so it’s important they attend to find out more.”