Pure Homes has welcomed the Welsh Government’s temporary measures on tax for homes purchase.
From 27 July, anyone buying their main home in Wales costing less than £250,000 will not pay any Land Transaction Tax, affecting 80 per cent of homebuyers. This threshold has increased from £180,000, for the residential main rates saving purchasers up to £2,450. This move follows the UK Government’s Stamp Duty threshold, before any tax is paid in England and Northern Ireland, rising from £125,000 to £500,000 as part of COVID-19 measures.
The Welsh Government’s Finance Minister, Rebecca Evans said: “This tax holiday will help first time buyers as well as those selling to move on. While eliminating taxes for those that need extra help, the tax holiday rate also reduces the tax paid on more expensive properties to help the wider housing market.”
Managing Director of Pure Homes, Chris White said; “I am really pleased the Welsh Government has announced these measures as we expand operations and respond to the needs for our quality housing across Cheshire and North Wales. They come after the number of property transactions in April and May in Wales fell by over 50 per cent* compared with the previous year. We are in a very good position now to really progress forward with new homes in Wales. We have just gained multiple awards for quality and construction and I welcome the fact that adopting these temporary rates should release £30m in new funding to support the construction of new, energy efficient social housing in Wales.”
Unlike England and Northern Ireland, this tax reduction will not apply to purchases on additional properties including buy to let and second homes, but it will last until 31 March 2021, the same period as the UK Government’s tax holiday.
*Source: Gov.UK National Statistics; “Monthly property transactions completed in the UK with value of £40,000 or above.” April & May 2019: 4,020 & 4,560 April & May 2020: 1,720 & 2,270