Written question WQ95364

Prior to the introduction of the higher rates residential property transactions rules on 26 January 2017, a short consultation was held. Two possible periods were proposed; an 18-month period, and a three-year period that matched the period for the similar regime for stamp duty land tax.

As the responses to consultation indicated support for the longer period on the basis some properties could take longer to sell, I chose to provide that longer period and that was approved by the, now, Senedd.

StatsWales quarterly data for land transaction tax shows, for transactions occurring in 2020-21, that around 70% of claims for a refund of higher residential rates tax paid where a taxpayer is replacing their main residence are made within 12 months of the purchase of a new home, and around 90% are made within 2 years of the purchase of the new main residence indicating that the rule is providing a reasonable period for taxpayers to sell their former homes.