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
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Submission of annual tax on enveloped dwellings ATED return
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Last date to file tax return before incurring £10 per day penalty
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HMRC writes to non-domiciled taxpayers following rule changes
HMRC has begun issuing “one-to-many” letters to individuals affected by recent changes to the tax rules for non-UK domiciled taxpayers. The letters prompt recipients to review their tax position under the new regime. What does this mean if you receive one?

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