The Land Transaction Tax (LTT) holiday has been extended from 31 March 2021 to 30 June. (In England it is called Stamp Duty.)

Anyone buying their main home in Wales costing less than £250,000 will not pay any Land Transaction Tax, affecting 80 per cent of homebuyers. This tax reduction will not apply to purchases on additional properties for buy to let and second homes.

Solicitors and mortgage advisors have reported that house purchases are taking much longer due to current lockdown restrictions, while homebuyers were also concerned that their property transactions if LTT ended on 31 March. The extension will mean a property transaction will need to complete before 1 July 2021

The extension has been well received, not only by home buyers but also by conveyancers and others in the industry who are coming up against increased pressure to get deals over the line by the deadline.

On and after 1 July 2021, the nil rate band will revert back to the £180,000 threshold.