Residential Property – Properties straddling the England-Wales border and stamp duty

Residential Property – Properties straddling the England-Wales border and stamp duty

If I am purchasing a property that straddles the England-Wales border, do I need to pay a different stamp duty on the land in England to the land in Wales?

Stamp duty is a tax paid by people buying properties, although it varies slightly across the UK.

In England buyers pay Stamp Duty Land Tax (SDLT), while in Wales buyers pay Land Transaction Tax (LTT).

The amount handed to the government depends on where you are in the UK, the price of the property and whether you’re a first-time buyer.

Section 9 of the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 states that where land is situated partly in Wales and partly in England, it’s to be treated as if it were two transactions.

Section 9(3) confirms that consideration for the transaction is to be apportioned between the two transactions “on a just and reasonable basis”.

An SDLT return will be required for the English land, and an LTT return for the Welsh land.

As the rates of tax are different in both jurisdictions, this will result in two nil rate bands being made available.

The differing rates of tax will also have an impact upon apportionment.

You will need to get a valuation from a surveyor to support any apportionment.

Hatchers have an extremely experienced Residential conveyancing team, who are happy to help with any property transactions. Please contact us on 01743 248545 or 01948 663361 or email  mail@hatchers.co.uk for any house sale or purchase enquiries. Alternatively please use the ‘Contact us’ form on the home page.