Thank you. I'm pleased to open the debate on the Land Transaction Tax (Temporary Variation of Rates and Bands for Residential Property Transactions) (Wales) (Amendment) Regulations 2021. I thank the Legislation, Justice and Constitution Committee and the Finance Committee for their reports.

Last July, I made regulations to introduce a temporary tax reduction period for LTT. The Senedd approved the making of those regulations in September. The purpose of the latest regulations is to extend the temporary tax reduction period from the original expiry date of 31 March to 30 June. I have listened to the concerns of homebuyers across Wales and housing market professionals about delays that may be impacting on some of the people who might reasonably have expected to be able to complete their transactions by 31 March. This extension to the temporary tax reduction period is to provide those taxpayers with additional time to complete their purchases.

Buyers entering transactions now should plan for the possibility that they may have LTT to pay or have an increase to their tax liability. It is a simple and clear rule: if you complete on or before 30 June, the reduction period will apply; if you complete afterwards, than the standard rates will apply. Importantly, our temporary tax reduction period, unlike in the rest of UK, applies only to those paying the main residential rates. There are no tax reductions for investors in buy-to-let properties, furnished holiday lets or second homes. This ensures that the benefits of this temporary variation are provided broadly to those purchasing homes in which to live. 

The extension to the temporary tax reduction period, whilst it will continue to provide an economic stimulus and continue to support the economy in Wales, is primarily directed to help homebuyers who have encountered delays in the homebuying process in the run-up to 31 March. Most should manage to complete by the new deadline.

The extension to the temporary tax-reduction period is a balanced and simple response by this Government. The extension is fair to those homebuyers who have been unable to complete their purchases, and simple, by continuing to operate by reference to a clear deadline. I therefore ask for the Senedd's support to confirm the extension to the temporary LTT rates.