Written question WQ86219
- Asked by
- Natasha AsgharConservative
- To be answered by
- Minister for Finance and Local Government
- Tabled
- Due
- Answered
- Time to answer
- 8 days
Question
What consideration has the Minister given to exempting the purchase of additional homes for long term rent from land transaction tax to boost the supply of homes?
Answer
Answered by Minister for Finance and Local Government
The primary purpose of land transaction tax (LTT) is to raise revenue to fund essential public services in Wales. The higher rates raise a significant amount of revenue with the additional revenue from higher rate transactions in 2021-22 generating £102 million. It is fair that those who can afford to purchase additional residential properties contribute more. Exempting people who invest in long term rental accommodation from paying the higher rates would either require other taxpayers to pay more or cuts to public services.
The market for additional residential properties has continued to perform robustly following an increase to the higher rates in December 2020. This does not suggest LTT exemptions are required to incentivise the purchase of properties for long term let.