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?
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.
Related Topics
-
Tax relief on equipment you haven’t paid for (yet)
The timing of tax relief for purchases of equipment isn’t straightforward when payments are delayed or goods are purchased through hire purchase (HP) agreements. How can you use these rules to your advantage and get tax relief before you’ve paid the final invoice?
-
HMRC clarifies summer holiday VAT cut
HMRC has published further guidance on the temporary VAT reduction for certain activities during the school summer holidays. The additional detail helps businesses determine which supplies qualify for the relief and, importantly, which do not. What do you need to know?
-
First MTD quarterly deadline arrives
The first quarterly reporting deadline under Making Tax Digital for Income Tax (MTD IT) is 7 August 2026. HMRC has now confirmed what will happen to those who miss it, including when it will start sending reminder letters. What do you need to know?


This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.