The Welsh Land Transaction Tax is coming - are you ready?
The new Land Transaction Tax (LTT) replaces stamp duty land tax in Wales on Sunday 1 April. All transactions after this date will be subject to the new tax and tax payments will be collected by the Welsh Revenue Authority. You must be registered to file a transaction and the new tax authority is advising conveyancers to register now for a ‘WRA online tax account’ as the process takes around 10 working days to complete.
You can register online and learn about the land transaction tax through the Welsh Revenue Authority (WRA) website. When you first register your firm you set up a single account and nominate an account administrator. The registration process includes a security check and is subject to postal confirmation: this stage takes around 10 working days.
Once registration is confirmed you can set up additional users on your account so that everyone who undertakes your filing with HMCTS currently can have their own dedicated account with the WRA. Users will be able to complete, save and submit an LTT return and obtain an LTT certificate to send to HM Land Registry.
The rates and bands for LTT are different from current rates for stamp duty land tax. The WRA have developed a tax calculator for the amount of LTT you will need to pay for Welsh transactions. View the Land Transaction Tax calculator.
The WRA website has technical guidance on the application of the new LTT which includes higher rates and cross-border and cross-title transactions. The WRA has created its new online filing system with input from solicitors and has received positive feedback from the many demonstration events which have taken place over the last month. Online filing will be available from Sunday 1 April. There will be on-going development of the system and the WRA welcome feedback on their processes.
The Welsh Revenue Authority are also tweeting @WRAtweet.