New Taxation Plans to Help First-Time Buyers

New Welsh Labour Government proposals will help first-time buyers in Wrexham and across Wales get on the housing ladder.

During this week’s draft Budget announcement, the Welsh Government published details surrounding the country’s first taxes in almost 800 years.

It is seen as a significant milestone in Wales’ devolution journey as, from April 2018, Wales becomes responsible for raising a proportion of its own revenue from 2 new taxes – the land transaction tax and landfill disposals tax – to spend on public services.

The Welsh Government outlined new progressive rates and bands for land transaction tax.

From April next year, a starting threshold of land transaction tax in Wales will be set at £150,000 – the highest in the UK.  By increasing the threshold at which the tax is payable, the average first-time buyer will pay no tax at all.

All buyers of residential properties costing up to £400,000 will pay the same or less tax than under stamp duty land tax and the average home buyer will pay nearly £500 less tax than they do under the existing system.

Wrexham’s Assembly Member, Lesley Griffiths, has welcomed the latest developments and is pleased the Welsh Government has wasted little time in introducing new taxation powers to help local residents.  She said: “Devolving certain tax powers has enabled the Welsh Government to reshape and make changes to existing taxes to better meet our nation’s needs and priorities.”

“House prices are, on average, almost seven times people’s income and no matter how hard people work, it’s becoming more and more difficult for young people in particular to save and buy a home.”

“These new progressive rates and bands for land transaction tax will make a real difference. Introducing higher taxes for Wales’ most expensive properties will help the average first-time buyers, who in turn will pay no tax at all.”

“Overall, 9 out of 10 homebuyers in Wales will either pay the same or less tax than under the current stamp duty land tax regime.”