Clwyd West MS Darren Millar has called on the Welsh Government to change its Land Transaction Tax rules so that they don't negatively impact elderly residents who need to move to more suitable accommodation to maintain their independence.
Darren raised the matter in the Welsh Parliament this week after being contacted by an elderly couple in the Abergele area who are unable to move into sheltered accommodation because they have not yet sold their home and would therefore be liable to pay the higher rate of Land Transaction Tax.
Calling for a statement on the impact of the higher rate of Land Transaction Tax (which is equivalent to Stamp Duty in England) on the housing market in Wales, he said:
“I've been contacted by an elderly couple in my constituency, who own their own home, but have been on a waiting list for an apartment in sheltered accommodation for over seven years. An apartment has now become available, but they're unable, unfortunately, to fund the £15,000 in the higher rate land transaction taxes that they now have to pay, because they haven't yet sold their existing property.
“They can get that money back once their property is sold, but they need to get their hands on that cash beforehand.
"They're unable to get a loan at the moment because of their age. They've begged and borrowed money from friends and family, but they still, unfortunately, have a shortfall, and they now face the prospect of having to turn this opportunity of the property away, simply because of the Land Transaction Tax bill."
In response, the Welsh Government's Trefnydd (Business Manager) told Darren that the higher rate element of Land Transaction Tax can be refunded up to 3 years after a move, if their current home is sold.
Speaking after raising the issue in the Senedd, Darren said:
"The Welsh Government's complacent response won't address the challenge my constituents are facing. We need a change in the Welsh tax regime as soon as possible to address this issue."