WQ86127 (e) Tabled on 27/09/2022

Will the Minister confirm whether there have been any discussions surrounding the rate of land transaction tax?

Answered by Minister for Finance and Local Government | Answered on 04/10/2022

I had been considering land transactions tax (LTT) rates and bands in the context of house price growth as part of preparations for the draft Budget. However, following the UK Government making changes to stamp duty land tax rates in England and Northern Ireland, I brought forward making changes to prevent any uncertainty for our taxpayers and our housing market. 

On 27 September, in a statement to the Senedd, I announced an increase to the zero-rate threshold for the main residential rates from 10 October. The threshold will be raised from £180,000 to £225,000, an increase of £45,000. According to the official house price data from the ONS, house price growth between 2018-19 and 2021-22 was £38,000. The increase in the threshold therefore exceeds house price growth between 2018-19 and 2021-22.