Homebuyers in Wales should pay less Land Transaction Tax (stamp duty equivalent) when purchasing a home in serious disrepair – but many don’t take advantage of reliefs.
Research from tax consultants SCA Tax shows that 11% of buyers overpaid, missing out on reliefs worth on an average refund of £12,909. It’s not just big developers; many ordinary buyers, landlords, and renovation-project owners are affected.
A home is deemed in serious disrepair in Wales if it has no working kitchen, no bathroom and unsafe electronics.
Sean Swimby, director and founder of SCA Tax, said: “People assume that if they’re buying a home, they must be paying residential rates.
“But if the property was in such poor condition that it couldn’t be lived in – no working kitchen, no bathroom, or unsafe electrics – it may qualify for much lower non-residential rates. You might’ve bought yourself a doer-upper, but been taxed as someone buying a normal home.
“Similarly, we regularly see properties with features like workshops, retail units, or even just a home office wrongly taxed as fully residential. That can mean thousands of pounds in unnecessary tax – and most people never realise they’ve overpaid.”
Nearly one in five homes in Wales have a Category 1 hazard present, meaning the home poses a risk to health.
And according to research published byHillarys, average UK home improvement spend shows that in Wales, homeowners spend a higher share of their housing expenditure on maintenance, repair, alterations and improvements than many other UK regions.
SCA Tax urged those who bought property in Wales in the last four years to check whether a refund is due.