New property taxes in Wales will save average home buyers £560 compared with the old system, research suggests.

Wales is introducing a Land Transaction Tax (LTT) to replace UK Stamp Duty next week, and the charges start once prices are above £180,000, which is higher than the current £150,001 threshold.

Analysis by removals website Compare My Move found that with the current average house price in Wales at £153,034, the average homebuyer would have paid £560 in Stamp Duty before the change but nothing under LTT.

The research shows that under the changes, most buyers in Wales will save money on their purchases, even for areas with the most expensive average prices.

Monmouthshire, where the average price of a property is £245,080, will see savings of £124, while Cardiff, where the average property is worth £200,082, will see savings of £799.

The LTT incorporates new thresholds, with a 3.5% charge on properties between £180,000 and £250,000 and then 5% on the portion between £250,001 to £400,000, 7.5% on £400,001 to £750,001, 10% on £750,000 to £1.5m and then 12% on anything above £1.5m.

In comparison, Stamp Duty in England is 2% on anything about between £125,001 and £250,000, 5% on £250,001 to £925,000 and 10% on £925,001 to £1.5m. Anything above £1.5m is charged at 12%.

Both systems charge an extra 3% for second properties.

But the analysis found buyers will be worse off by the changes in Wales if they are purchasing a house worth more than £402,000. It is from this point that the costs intersect with the old system and LTT becomes more expensive than Stamp Duty.

Under LTT, the portion of a sale above £400,000 and up to and including £750,000 will be charged at 7.5%. In comparison, under UK Stamp Duty, a buyer would pay 2% on the price between 250,001 and £925,000.

From this point the gap widens, with a £1m property costing £61,200 in LTT compared to £43,750 in Stamp Duty.

Compare My Move said: “The LTT looks set to benefit the average housebuyer across the whole of Wales. The changes can be seen as a great thing for prospective home owners.”