The draft Welsh Budget announced today includes changes to Welsh stamp duty that will take effect from tomorrow, 22nd December, unless contracts have exchanged before that date.
The changes include a 1% increase in the surcharge for purchases of ‘additional’ dwellings by individuals and purchases of dwellings by companies from 3% to 4%. The surcharge is currently 3% in England and Northern Ireland and already 4% in Scotland.
There will also be a 50% increase in the nil-rate band for non-residential (or mixed) transactions from £0-£150,000 to £0-£225,000.
The extra revenue produced by the higher surcharge, estimated at £13 million, will be invested in social housing. The increased nil-rate band for non-residential (and mixed) transactions is designed to help businesses recover from the Covid-19 pandemic.
The Welsh government also announced that the stamp duty holiday will not be extended in Wales. It will end, as planned, for completions on or after 1 April 2021.
Sean Randall, a partner at 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.”