Wales raises stamp duty by 1% on second homes

23 December 2020 | General

The Welsh government has increased its equivalent of stamp duty on second homes by 1%.

The change means second homebuyers now have to pay a surcharge of 4%, up from 3%.

People could now pay up to 16% for homes worth up to £1.6m.

The increase to the Land Transaction Tax surcharge will raise an estimated £13m, which will be spent on social housing.

At the same time there’s been a 50% increase in the nil-rate band for non-residential (or mixed) transactions from £0-£150,000 to £0-£225,000.

Sean Randall, a partner at law firm Blick Rothenberg, said: “the measures are a proportionate response to the effect of the pandemic in Wales.

“Pressure will now be on the UK government to pass similar measures.”

This post has originally been featured in Property Wire.