- Posted by: David Rees MS
- Category: News
Aberavon AM, David Rees, has welcomed Welsh Labour Government plans to help first time buyers get on the housing ladder, in Neath Port Talbot. The plans were set out in this year’s Welsh budget by the Welsh Finance Secretary, Make Drakeford.
This budget is a significant milestone in Wales’ devolution journey as, from April 2018, Wales becomes responsible for raising a proportion of its own revenue – from Wales’ 2 new taxes, land transaction tax and landfill disposals tax– to spend on public services.
Welsh Labour have wasted no time in using these powers to help residents in Aberavon. The Finance Secretary has today announced new progressive rates and bands for land transaction tax (LTT)
The new residential rates for LTT will see the average first-time buyer paying no tax at all and all buyers of residential properties costing up to £400,000 paying the same or less tax than they currently do.
Mr Rees said: “We are all aware that these are difficult times for first time buyers. Since the Tories were elected in 2010 UK Government policies have made it even harder. With rents going up and wages for young people going down”
“The average age of a first time buyer continues to rise. These new progressive rates and bands for Land Transaction Tax and will make a real difference. 9 out of 10 home buyers in Wales will either pay the same or less tax than under the current stamp duty land tax regime. This means that the average first time buyer in Aberavon will pay nothing”
Notes to editor:
For land transaction tax, the following rates are planned:
|Residential LTT rates|
|Price threshold||Main residential rates|
|£0 – £150,000||0%|
|£150,000 – £250,000||2.5%|
|£250,000 – £400,000||5%|
|£400,000 – £750,000||7.50%|
|£750,000 – £1.5m||10%|