Institutional investors and housebuilders with property portfolios across the UK could face increased administrative and compliance burdens as a result of a new property bill being introduced by the Welsh Assembly.
The new Land Transaction and Anti-Avoidance of Devolved Taxes Bill, which is due to be introduced in April 2018, will see Land Transaction Tax (LTT) replace Stamp Duty Land Tax (SDLT) in Wales.
The new Bill will have important implications for those buying or selling properties in Wales and will introduce separate and additional administration requirements for housebuilders and investors during cross jurisdictional transactions.
Maisie Yau, a commercial property specialist with Palmers, said: “The new tax, which will be collected by the Welsh Revenue Authority rather than HMRC, will be payable upon the purchase or lease of land or buildings. As yet full details, including the threshold at which this tax will become payable, have not been announced.
“A good commercial conveyancing solicitor will be able to provide advice on compliance issues and deal with much of the additional paperwork which LTT will create.”
The Welsh Government’s statement regarding the Land Transaction Tax and Anti-avoidance of Devolved Taxes Bill can be found here.
If your commercial property portfolio is likely to be affected by the new tax rules, or you need support with any aspect of property law or commercial conveyancing, please contact us.