The measures are a proportionate response to the effect of the pandemic in Wales. Pressure will now be on the UK government to pass similar measures.
The changes are:
- 1% increase in the surcharge for purchases of “additional” dwellings by individuals and purchases of dwellings by companies (from 3% to 4% – the surcharge is 3% in England and Northern Ireland and already 4% in Scotland);
- A 50% increase in the nil-rate band for non-residential (or mixed) transactions from £0 – £150,000 to £0 – £225,000.
The extra revenue produced by the higher surcharge, estimated at £13 million, will be invested in social housing.
The increased nil-rate band for non-residential (and mixed) transactions is designed to help businesses recover from the Coronavirus pandemic.
The Welsh government also announced that the Stamp Duty “holiday” will not be extended in Wales. It will end, as planned, for completions on or after 1 April 2021.