Mark Whitehead 04 October 2017

Wales to replace stamp duty with ‘progressive’ land tax

Wales to replace stamp duty with ‘progressive’ land tax image

Most first-time buyers in Wales will no longer pay tax on their new home under plans announced by the devolved Welsh government.

In the first taxes raised in Wales for 800 years, stamp duty will be replaced by a new land transaction tax which will include a 0% rate for homes worth up to £150,000.

Homes costing more than £400,000 will attract higher rates in what the Cardiff government described as 'progressive' tax plans.

It said the average home buyer will pay nearly £500 less than now.

Office for National Statistics (ONS) figures show the average house price in Wales including all property types was £151,000 in July.

Welsh government finance secretary Mark Drakeford said: 'From April, Wales will introduce the first Welsh taxes in almost 800 years, supporting first-time buyers and boosting business.

'The devolution of tax powers provides us with the opportunity to reshape and make changes to improve existing taxes to better meet Wales’ needs and priorities

'I have always been clear that we will use these powers to help improve fairness and support jobs and economic growth in Wales.'

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