Are SDLT and LTT payable on the purchase of property on the England-Wales border?

I’m instructed in the purchase of a property that straddles the England-Wales border. Does my client have to pay land transaction tax (LTT) on the land in Wales and stamp duty land tax (SDLT) on the land in England?

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 LTT return will be required for the Welsh land and an SDLT return for the English 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 should advise your client to get a valuation from a surveyor to support any apportionment.

Conveyancing solicitors will need to register with the Welsh Revenue Authority before they can file an LTT return.

For further guidance, see the Welsh Revenue Authority’s guidance notes.