The Welsh government has followed the UK government and extended the stamp duty holiday. But unlike in England, there will be no tapered return to its previous level.
The first £250,000 of the price paid for a residential property in Wales will continue to be free from Welsh stamp duty provided that the transaction completes by the end of June.
Sean Randall, a partner at tax and advisory firm Blick Rothenberg, said: “In response to the government’s decision to extend the stamp duty holiday in England and Northern Ireland by three months, the Welsh Government have announced they will do the same.”
“The first £250,000 of the price paid for a residential property in Wales will continue to be free from Welsh stamp duty provided that the transaction completes before 1 July 2021.”
For transactions completing on or after 1 July 2021, the £250,000 threshold will revert to £180,000. The Welsh ministers have decided not to give a reduced stamp duty holiday.
Chancellor Rishi Sunak on Wednesday announced a tapered approach to the stamp duty holiday in England and Northern Ireland until the end of September.
Randall added: “The 1 July 2021 will become the new ‘cliff-edge’. The Welsh stamp duty holiday is worth up to £2,450.
“Pressure will now be on the Scottish ministers to extend their stamp duty holiday, also capped at £250,000 and worth up to £2,100, which is due to end on 31 March 2021.”
Daryl McIntosh, strategic development manager at Propertymark, said: “By extending the LTT reduction period until 30 June 2021, those purchasing their main residential property will benefit from the savings, which will encourage buyer activity and help keep the residential property market prosperous.
“The measures also go some way into easing any immediate conveyancing or lenders issues that buyers have been experiencing over the intervening period.
“The pandemic has shone a light on where and how people want to live and the next government in Wales should look to do an impact assessment on COVID and housing need.”