Written question WQ95272
- Asked by
- Janet Finch-SaundersConservative
- To be answered by
- Cabinet Secretary for Finance and Welsh Language
- Tabled
- Due
- Answered
- Time to answer
- 6 days
Question
Will a longer period than the normal three years for the disposal of a former main residence under land transaction tax be allowed on the basis that COVID-19 and the restrictions put in place had a substantial adverse effect on the ability of buyers to dispose of properties?
Answer
Answered by Cabinet Secretary for Finance and Welsh Language
New rules came into force on 12 July this year allowing the 3-year period to be extended in cases where transactions are prevented due to emergency restrictions or impeded due to issues related to fire safety defects.
Qualifying circumstances and criteria apply, and are set out in the Explanatory Memorandum: Explanatory Memorandum to The Land Transaction Tax and Anti-Avoidance of Devolved Taxes (Wales) Act 2017 (Amendments to Schedule 5) Regulations 2024.
These rules do not apply to transactions delayed by the emergency restrictions during the Covid-19 pandemic, as there was sufficient time following the lifting of those restrictions to allow buyers to dispose of properties and benefit from the existing higher residential rates refund and exception rules.