Welsh government increases charge on some residential property purchases

The Welsh government published its Budget for 2025/26 last week. This included a number of tax announcements. What are the key points?

Welsh government increases charge on some residential property purchases

Wales has a devolved government with limited powers to make and amend tax law. One tax that is fully devolved is land transaction tax - the equivalent of stamp duty land tax for land and buildings physically located in Wales. The 2025/26 Welsh Budget included the announcement that higher rates, i.e. those that apply to purchases of additional dwellings by an individual (or any purchase by a company), will increase by 1% with effect from 11 December 2024. The rates, which apply to the consideration at the date of completion, are now as follows:

First £180,000

5%

Next £70,000

8.5%

Next £150,000

10%

Next £350,000

12.5%

Next £750,000

15%

Remainder over £1,500,000

17%

 

No change has been made to the Welsh rate of income tax meaning that Welsh taxpayers remain aligned with the main UK rates for at least another year.