Member of the Welsh Parliament for Monmouth, Nick Ramsay, this week in the Senedd asked a supplementary question of the Finance Minister regarding the phasing out of the nil rate band of Land Transaction Tax (LTT) on residential properties up to £250,000 in value.
Speaking to the Finance Minister in the Chamber Nick said: “I hear what you're saying about the housing market being different here from across the border, but nonetheless it still needs that stimulus that the UK Government are seeking to do by applying the nil rate band until the end of 2021. Can I ask you, Minister, that you look at this again and keep it under review and act on the evidence? Because I am concerned that, certainly in some parts of Wales, this policy may have more of a negative impact than in others, and I do think that there is a case for extending relief as long as possible until the economy gets back on its feet.”
Rebecca Evans MS, Finance Minister replied:
“Well, all of these rates and bands across the Welsh taxes are kept constantly under review. The extension of the LTT reduction is expected to benefit around 4,000 additional homebuyers here in Wales, and up to and including January, around 10,000 homebuyers have already benefited from the temporary reduction that I announced last year. So, a significant number of households have already benefited from it, and actually only around a quarter of house buyers at the moment are actually paying any land transaction tax as a result of the decisions taken last year in this respect. But, as I say, when the normal—if you like—rates do return, we will still have a relatively generous situation here in Wales.”