No April fool: Welsh Land Transaction Tax replaces Stamp Duty Land Tax from 1 April 2018

Written on 28 Mar 2018

Sweden has an Easter Wizard instead of an Easter Bunny and, as from Easter Sunday, 1 April 2018, Wales will now have Welsh Land Transaction Tax (LTT) instead of SDLT.

Whilst broadly similar to SDLT, the tax (which will apply to transactions of Welsh land with an effective date on or after 1 April 2018) has some key differences. In addition to the rates and bands being slightly different, there are differences in detail in the LTT code and it is important to check the LTT legislation when dealing with land in Wales. For example, some of the reliefs are not facsimiles of the SDLT reliefs and contain subtle differences.

Some key considerations:

  • From 1 April 2018 onwards, returns for land transactions in Wales will be filed with the Welsh Revenue Authority, rather than HMRC;
  • A new calculator is available on the Welsh Revenue Authority’s website to help people calculate the tax due under the new rules;
  • If you are a professional body seeking to file a Land Transaction Return in Wales online from 1 April 2018, you will need to register for an account with Welsh Revenue Authority;
  • If there is a single transaction comprising a plot of land spanning Wales and England, consideration is apportioned on a "just and reasonable" basis;
  • Do not forget, that from 1 April 2018, when you apply to Land Registry to create or update title registers of land or property in Wales, you will need to provide evidence that the correct Welsh LTT has been paid. For more information, see the Land Registry blog.

Please contact one of our experts for more information.