Wales looks to scrap SDLT with new bill

The new land transaction tax (LTT) is similar to SDLT, but will include changes to the way rates and bands are set, a new general anti-avoidance rule and a simplification of rules in relation to leases.

If granted royal assent, the new bill would apply from April 2018 and would be the first Welsh tax in almost 800 years.

Mark Drakeford, Welsh finance secretary, said: "This is a tax which affects so many of us.

“By replacing stamp duty land tax with a new made-in-Wales land transaction tax, public services in Wales will continue to benefit from the revenues raised by this important tax.

“…It will broadly mirror stamp duty land tax, providing the consistency and stability business tell us they need and providing a smooth transaction for home buyers and the property market.”

The new tax rates will be decided closer to April 2018 to reflect economic conditions at that time.

Other changes include the removal of a 15% slab rate for considerations over £500,000 being acquired by ‘non-natural’ persons, such as companies or investment schemes.

Meanwhile, the rent element of new residential leases will be exempt from tax.

In 2014-15, £170m was raised from SDLT on 55,000 transactions in Wales.

This figure is expected to rise to £244m by 2018-19.

The bill follows changes to SDLT in April, which saw a 3% increase for buyers purchasing a second home or buy-to-let property.