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Disappointment over Welsh decision to continue 3% Stamp Duty tax

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  • 18/10/2016
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Disappointment over Welsh decision to continue 3% Stamp Duty tax
The Welsh Government’s decision to continue its 3% Stamp Duty tax on additional properties has been highly criticised by members of the industry.

During the summer the Welsh government carried out a technical consultation which looked at how the higher rate could be adapted to make it better suited to Wales.

Last week, the cabinet secretary for Finance and Local Government, Mark Drakeford, confirmed the higher rate would be levied in Wales when land transaction tax replaces the Stamp Duty tax in April 2018.

Drakeford said: “I am today announcing that this levy will exist in Wales when land transaction tax – the successor to Stamp Duty in Wales – comes into force.

He added the tax revenue generated from the Stamp Duty will help fund public services in Wales.

But the decision has been slammed by David Cox, managing director of the Association of Residential Agents (ARLA), claiming the continuation of the 3% surcharge will be a detriment to landlords and tenants.

“In continuing with the surcharge, the Welsh Government is not making the most of its new powers in order to increase the supply of homes that Wales so desperately needs.”

He added: “Ultimately, this will lead to sub-standard accommodation as money, previously used for the up keep of homes, will be swallowed up in tax payments.”

Drakeford said that despite the decision there will still be continued talks with stakeholders over how best to adapt the higher rate to meet the needs of Wales’ ever changing circumstances.

 

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