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Stamp Duty Land Tax: Welsh transactions made before and after 1 April 2018

24th January 2018

Land and Property Transactions in Wales on or after 1 April 2018

Land Transaction Tax:

From 1 April 2018 you’ll pay Land Transaction Tax (LTT) on any land transactions in Wales. Land Transaction Tax is operated by the Welsh Revenue Authority (WRA) so payment will be to WRA and not to HM Revenue and Customs (HMRC).

Stamp Duty Land Tax:

From 1 April 2018 you won’t have to pay Stamp Duty Land Tax (SDLT) or need to send HM Revenue and Customs (HMRC) a return for these transactions (see property tax special cases below).

HM Land Registry:

You will still need to send a certificate to HM Land Registry along with your application to change the register (form AP1). When lodging the certificate as a supporting document use the following title in panel 5 of form AP1 to distinguish which certificate you are lodging:-

  • “Stamp Duty Land Tax” for the SDLT5 certificate (received from HMRC)
  • “Land Transaction Tax” for the LTT certificate (received from WRA)

Property Tax Special cases

You’ll still have to pay SDLT and notify HMRC if your transaction matches one of the cases below.

Retrospective notification cases

Tell HMRC about your transaction afterwards. For example, those cases where the transaction took place before 1 April 2018 but didn’t become notifiable until after 1 April 2018.

Transitional cases

Land transactions where a contract was entered into before 17 December 2014 but completion takes place on or after 1 April 2018.

Cross-border cases

Transactions for land that falls on both sides of the English-Welsh border. You’ll only pay SDLT on the English part of the land transaction.

Multiple interest cases

A single transaction relating to multiple properties that are in England, Northern Ireland (or both) and Wales. Only the properties in England and Northern Ireland are subject to SDLT.

Any properties in Scotland which are part of the transaction are subject to Land and Buildings Transaction Tax (which is operated by Revenue Scotland).

Land and Property Transactions in Wales before 1 April 2018

You’ll pay SDLT on all transactions made with an effective date before 1 April 2018.

 

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