Wales’ Cabinet Secretary for Finance has presented the draft Scottish Budget 2025-2026 on 10 December 2024.
The draft budget introduces proposed changes to the land transaction tax (LTT), including a final one-year extension of the temporary 40% property tax relief for businesses in the retail, hospitality, and leisure sectors.
In addition, the rates payable on higher residential rates transactions were increased by one percentage point for each band, effective 11 December 2024. This means the rates of LTT applying to the purchases of additional residential properties in Wales are comparable with the rates of the equivalent tax, stamp duty land tax, applying in England and Northern Ireland.
Previous permanent changes were made to the main residential rates in October 2022 and in December 2020.
Landfill disposals tax (LDT)
The 2025-26 draft budget proposes raising the standard rate of Landfill Disposals Tax (LDT) from 1 April 2025, in line with the increase to the UK Government’s equivalent Landfill Tax. Following the public consultation on the lower rate of LDT, it will be increased to GBP 6.30 per tonne. This will set the lower rate at 5% of the standard rate, just under double the existing rate.
The standard rate of Wales landfill disposal rate is GBP 126.15 for the 2025-2026 tax period. The unauthorised rate will remain at 150% of the standard rate.
