As we heard, these regulations specify an extension to the current temporary variation to the land transaction tax and LTT rates and bands that will apply to purchases and certain residential property transactions, commencing on 1 April and ending on 30 June 2021, with the rates and bands reverting back to those in force prior to 27 July 2020 after that date. We, of course, support this extension, although we regret that the ceiling on the zero-rate band is remaining at £250,000. 

Following the announcement by the UK Chancellor that the current stamp duty holiday in England, with a nil-rate band up to £500,000, was being extended until the end of June, and that the nil-rate band will then be £250,000 until the end of September to smooth the transition, returning to the normal rate there from 1 October, the Welsh Government announced that it was temporarily extending the equivalent LTT temporary tax reduction period in Wales until 30 June but still keeping the ceiling on the nil-rate band at £250,000.

In England, the nil rate for first-time buyers from 1 July will still be up to £300,000, whereas, from 1 July in Wales, the nil-rate band will only go up to £180,000, then rising to 3.5 per cent up to £250,000 and 5 per cent over £250,000. Well, as someone who grew up in north Wales told me, they're buying a new build in Wrexham for £280,000, but this will add an additional cost of £3,950 to their purchase and they're therefore considering finding something in England instead. And although the ceiling on the nil-rate band in England will fall to £125,000 from 1 October, first-time buyers there will then still pay nothing on purchases up to £300,000, unlike in Wales. Whereas this Welsh Government talks about average first-time buyer purchase prices in Wales, these do not apply to large chunks of the population of Wales, particularly in populous cross-border regions. We cannot therefore support these regulations and will abstain accordingly.