Trustpilot

New Land Transaction Tax changes from 10 October 2022 – what you need to know

By Natalie Summers – Head of CJCH Solicitors Conveyancing

SDLT

Stamp Duty Land Tax (“SDLT”) is a tax imposed by the government on the purchase of land and properties with values over a certain threshold in England. The amount of SDLT payable is calculated on a % of the purchase price paid. The changes announced to Stamp Duty in the September 2022 mini-budget amend the threshold at which SDLT becomes payable. The new rates are:

House Value   Stamp Duty
£0 – £250,000 0%
£250,001 – £925,000 5%
£925,001 to £1.5m 10%
Over £1.5m 12%

This means that if you are purchasing a property for £250,000 or less then you will not pay any SDLT.

First Time Buyer

Provided you, and anyone you are buying with, are a First-Time Buyer, you will additionally benefit from 0% SDTL on the first £425,000 value of the property, under the condition that the purchase price is less than £625,000.

You will pay 5% SDLT on the portion from £425,001 to £625,000. If the purchase price is over £625,000 you cannot claim the relief.

Additional Properties

You will have to pay 3% on top of the SDLT rates if when buying a new property, following completion you will own more than one property.

You will not pay the extra 3% SDLT if the property you are buying is replacing your main residence which has already been sold.

If you have not sold your main residence on the day of completion, you will have to pay the higher rate. This is because you will own two properties. You can apply for a refund of the extra SDLT if you sell your previous main residence within 36 months of completion of your new main residence purchase.

LTT

Land Transaction Tax (“LTT”) is a tax imposed by the government and is payable on the purchase of land and properties with values over a certain threshold in Wales . LTT replaced SDLT in Wales in 2018. The amount LTT payable is calculated on a % of the purchase price paid.

The Welsh Government have announced the new tax bands after 10 October 2022 which are as follows:

House Value Land Transaction Tax
£0 – £225,000 0%
£225,001 – £400,000 6%
£400,001 – £750,000 7.5%
£750,001 – £1.5m 10%
Over £1.5m 12%%

This means that if you are purchasing a property for £225,000 or less then you will not pay any LTT.

First Time Buyer

There is no additional First Time Buyer relief in Wales

Additional Properties

You will have to pay 3% on top of the LTT rates if when buying a new property, following completion you will own more than one property.

You will not pay the extra 3% LLT if the property you are buying is replacing your main residence and that has already been sold.

If you have not sold your main residence on the day of completion, you will have to pay the higher rate. This is because you will own two properties. You can apply for a refund of the extra LLT if you sell your previous main residence within 48 months of completion of your new main residence purchase.

 

For more information, speak to our experienced residential property and conveyancing team at CJCH Solicitors. With offices across South Wales, we are here to help you.

CJCH History Month: The Story of Patchell Davies Solicitors

By Amy Palin

In April 2017 CJCH Solicitors welcomed its newest addition to the firm, with the incorporation of, Blackwood based, Patchell Davies Solicitors.

The story of Patchell Davies begins in 1977, when a new face arrived on the legal scene in Blackwood, Howard Patchell. After working less than a year as an Assistant Solicitor in a local firm, he became a partner, but it would only be four years before Howard decided to go it alone and open his own practice. Howard Patchell & Co opened its doors on Pentwyn Road, Blackwood in January 1982.

The firm grew from strength to strength, and in 1985 was joined by Graeme Davies. This marked the beginnings of the team that, despite changes over the years, would remain at the core of the firm throughout.

Graeme’s arrival at the firm allowed for the expansion of its expertise, in family law and litigation, areas in which he specialises.

With an expanding team and growing demand, the firm moved to bigger offices at its current location on Blackwood High Street in 1987.

It was in 1992 the firm officially became established as Patchell Davies, the name by which it has been known for nearly three decades, and under which it became a well-known and respected face on the High Street, offering clients a wide range of services.

Howard Patchell specialises in Wills, Probate, Conveyancing, and Commercial work. Graeme Davies is accredited as a Senior Litigator by the Association of Personal Injury Lawyers and is a member of the Family association Resolution. David James, who has been with the firm for eight years, and the firm’s newest addition, Joanne Lerwill, specialise in Conveyancing.

The firm today takes pride in its reputation and loyalty from clients. This can be attributed to the quality of service, and also to the relationships developed with longstanding members of staff, who give clients the confidence that they will always receive a professional service with a personal touch.

Now an integrated part of CJCH Solicitors, the team from Patchell Davies continues to deliver their impeccable work ethic and client service standards.