LegalizeThe Land Transaction Tax (Tax Bands and Tax Rates) (Wales) Regulations 2018
Made: 31 January 2018
Coming into force: 1 April 2018
The Welsh Ministers make the following Regulations in exercise of the powers conferred on them by section 24(1) of, and paragraph 28(1) of Schedule 6 to, the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 .
In accordance with section 25(1) of that Act, a draft of these Regulations was laid before and approved by a resolution of the National Assembly for Wales.
Title and commencement
1
- (1) The title of these Regulations is the Land Transaction Tax (Tax Bands and Tax Rates) (Wales) Regulations 2018.
- (2) These Regulations come into force on 1 April 2018.
Application
2
- (1) Subject to paragraph (2), these Regulations have effect in relation to any chargeable transaction with an effective date on or after 1 April 2018.
- (2) These Regulations do not have effect in relation to any chargeable transaction that is subject to the Land Transaction Tax (Temporary Variation of Rates and Bands for Residential Property Transactions) (Wales) Regulations 2020.
Tax bands and percentage tax rates
3
The Schedule to these Regulations specifies the tax bands and percentage tax rates for the purposes of section 24(1) of, and paragraph 28(1) of Schedule 6 to, the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017—
- (a) Table 1 specifies the tax bands and percentage tax rates for each band for residential property transactions;
- (b) Table 2 specifies the tax bands and percentage tax rates for each band for higher rates residential property transactions;
- (c) Table 3 specifies the tax bands and percentage tax rates for each band for non-residential property transactions; and
- (d) Table 4 specifies the tax bands and percentage tax rates for each band for transactions where the chargeable consideration consists of rent.
SCHEDULE
| Tax band | Relevant consideration | Percentage tax rate |
|---|---|---|
| Zero rate band | Not more than £225,000 | 0% |
| First tax band | More than £225,000 but not more than £400,000 | 6% |
| Second tax band | More than £400,000 but not more than £750,000 | 7.5% |
| Third tax band | More than £750,000 but not more than £1,500,000 | 10% |
| Fourth tax band | More than £1,500,000 | 12% |
| Tax band | Relevant consideration | Percentage tax rate |
| --- | --- | --- |
| First tax band | Not more than £180,000 | 5% |
| Second tax band | More than £180,000 but not more than £250,000 | 8.5% |
| Third tax band | More than £250,000 but not more than £400,000 | 10% |
| Fourth tax band | More than £400,000 but not more than £750,000 | 12.5% |
| Fifth tax band | More than £750,000 but not more than £1,500,000 | 15% |
| Sixth tax band | More than £1,500,000 | 17% |
| Tax band | Relevant consideration | Percentage tax rate |
| --- | --- | --- |
| Zero rate band | Not more than £225,000 | 0% |
| First tax band | More than £225,000 but not more than £250,000 | 1% |
| Second tax band | More than £250,000 but not more than £1,000,000 | 5% |
| Third tax band | More than £1,000,000 | 6% |
| Tax band | Relevant consideration | Percentage tax rate |
| --- | --- | --- |
| NRL zero rate band | Not more than £225,000 | 0% |
| First tax band | More than £225,000 but not more than £2,000,000 | 1% |
| Second tax band | More than £2,000,000 | 2% |
Signed
Mark Drakeford — Cabinet Secretary for Finance, one of the Welsh Ministers — 2018-01-31
Explanatory note
(This note is not part of the Regulations)
Footnotes
[^f00001]: 2017 dccc 1.
[^f00002]: Gweler adran 17 o Ddeddf Treth Trafodiadau Tir a Gwrthweithio Osgoi Trethi Datganoledig (Cymru) 2017 i gael y diffiniad o “trafodiad trethadwy”.
Editorial notes
[^c22975311]: 2017 anaw 1.
[^c22975321]: See section 17 of the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 for the definition of “chargeable transaction”.
[^key-14307ea081c444bc2e22b0aac8b731f0]: Reg. 2(1): reg. 2 renumbered as reg. 2(1) (27.7.2020) by virtue of The Land Transaction Tax (Temporary Variation of Rates and Bands for Residential Property Transactions) (Wales) Regulations 2020 (S.I. 2020/794), regs. 1(2), 4(2)(a) (with reg. 2)
[^key-8878269988772cf5f86e99e585268d42]: Words in reg. 2(1) inserted (27.7.2020) by The Land Transaction Tax (Temporary Variation of Rates and Bands for Residential Property Transactions) (Wales) Regulations 2020 (S.I. 2020/794), regs. 1(2), 4(2)(b) (with reg. 2)
[^key-95038745bb60cb673ea893d630c20c16]: Reg. 2(2) inserted (27.7.2020) by The Land Transaction Tax (Temporary Variation of Rates and Bands for Residential Property Transactions) (Wales) Regulations 2020 (S.I. 2020/794), regs. 1(2), 4(2)(c) (with reg. 2)
[^key-c3c6123a32e54d9039e3f6f4dabff594]: Sch. Table 3 substituted (with effect in accordance with regs. 3-5 of the amending S.I.) by The Land Transaction Tax (Tax Bands and Tax Rates) (Wales) (Amendment) Regulations 2020 (S.I. 2020/1618), regs. 1, 6(3)
[^key-9062c369cd9917bee15bf518d03bee4f]: Sch. Table 4 substituted (with effect in accordance with regs. 3-5 of the amending S.I.) by The Land Transaction Tax (Tax Bands and Tax Rates) (Wales) (Amendment) Regulations 2020 (S.I. 2020/1618), regs. 1, 6(4)
Enwi a chychwyn
Cymhwyso
Bandiau treth a chyfraddau treth canrannol
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