Translate the text from English to Welsh.



 
I am pleased to announce today changes to the land transaction tax (LTT) rates and thresholds that will apply to purchases of residential property from 27 July 2020 to 31 March 2021\.   From 1 April 2021 the LTT residential property transaction rates and thresholds will revert to those that apply today.  


The changes are in response to those that have been made by the UK government to increase the starting threshold at which the main rates of stamp duty land tax (SDLT) is paid to £500,000\.    The UK government’s changes will have greatest impact where prices are highest, or where the very wealthiest are able to afford to buy some of the most expensive properties in the local area.  The changes introduced by the UK government reflect the nature of the housing market in England, in particular, the challenges facing buyers in London and the South East of England where house prices are considerably higher than they are in Wales.


The Welsh Government had already taken significant steps by ensuring that a majority of home purchases are not taxed.  Our current land transaction tax (LTT) threshold of £180,000 means that not only are we the only country in the UK with a starting threshold that is higher than the average price of a home, but also that currently around 60% of homebuyers do not pay tax.  


However, despite having the most progressive starting tax threshold in the UK I am today announcing changes to the LTT rates and thresholds.  These rates and thresholds have been set so they more closely reflect the property market in Wales and will ensure that we retain a progressive regime that expects those with the broadest shoulders to contribute a larger share in tax. 


I have therefore decided that the starting threshold for land transaction tax main residential rates will be set at £250,000 from 27 July. This new threshold is £70,000 higher than our current starting threshold for residential property transactions and will mean that only around 20% of those liable to the main LTT rates will pay any tax at all.  Those buying properties costing more than £250,000 will make a saving of £2,450 over that which would previously have been payable.  


These changes will not apply to those buying property that is liable to the higher rates.  The rates and thresholds for buyers of residential property as an investment or as a second home remain unchanged.  This targeted tax reduction will support taxpayers who are paying the main rates of land transaction tax (broadly, those buying their homes) and who may need additional support due to the pandemic. 


However, whilst I am able to provide for these tax reductions, in line with this Welsh Government’s principles, I can confirm that we will take a different approach to address broader housing problems faced by those most in need. 


Today, I can also announce the allocation of £30m to the Social Housing Programme that will provide additional support to a range of activities that will boost construction within the social housing sector.


Taken together the tax changes and spending commitment provide:


* that around 80% of homebuyers will pay no tax on purchasing their home,
* that all buyers of residential property who would have paid the main rates of LTT before 27 July will enjoy a tax saving of up to £2,450, and,
* funding to boost construction in the social housing sector, providing more homes in this sector, and an economic boost to both the important construction sector and the economy more widely.


A table showing the main and higher residential tax rates and bands that will be in force from 27 July to 31 March 2021 is attached.


 


**Residential Property Transactions**


**Rates and Thresholds from 27 July 2020 to 31 March 2021**


 




| **Main rates Residential property transactions**    *Tax band* | *Relevant consideration* | *Percentage tax rate* | **Higher rates residential property transactions**    *Tax band* | *Relevant consideration* | *Percentage tax rate* |
| --- | --- | --- | --- | --- | --- |
| Zero rate band | Not more than £250,000 | 0% | First tax band | Not more than £180,000 | 3% |
| First tax band | More than £250,000 but not more than £400,000 | 5% | Second tax band | More than £180,000 but not more than £250,000 | 6\.5% |
| Second tax band | More than £400,000 but not more than £750,000 | 7\.5% | Third tax band | More than £250,000 but not more than £400,000 | 8% |
| Third tax band | More than £750,000 but not more than £1,500,000 | 10% | Fourth tax band | More than £400,000 but not more than £750,000 | 10\.5% |
| Fourth tax band | More than £1,500,000 | 12% | Fifth tax band | More than £750,000 but not more than £1,500,000 | 13% |
|  |  |  | Sixth tax band | More than £1,500,000 | 15% |
|  |  |  |  |  |  |


 


 







Translation:


 
Mae'n bleser gennyf gyhoeddi heddiw newidiadau i gyfraddau a throthwyon y dreth trafodiadau tir a fydd yn gymwys i eiddo preswyl sy'n cael ei brynu rhwng 27 Gorffennaf 2020 ac 31 Mawrth 2021\. O 1 Ebrill 2021 ymlaen, bydd cyfraddau a throthwyon y dreth trafodiadau tir ar gyfer eiddo preswyl yn dychwelyd at y rhai sy'n gymwys heddiw.  


Daw'r newidiadau mewn ymateb i'r rhai a wnaed gan Lywodraeth y DU i gynyddu'r trothwy cychwynnol ar gyfer talu prif gyfraddau treth dir y dreth stamp (SDLT) i £500,000\. Bydd newidiadau Llywodraeth y DU yn cael yr effaith fwyaf lle ceir y prisiau uchaf, neu lle mae'r mwyaf cyfoethog yn gallu fforddio prynu peth o'r eiddo drutaf yn yr ardal leol. Mae'r newidiadau a gyflwynwyd gan Lywodraeth y DU yn adlewyrchu natur y farchnad dai yn Lloegr – ac, yn benodol, yr heriau sy'n wynebu prynwyr yn Llundain a De\-ddwyrain Lloegr lle mae prisiau tai gryn dipyn yn uwch nag yng Nghymru.


Roedd Llywodraeth Cymru eisoes wedi cymryd camau sylweddol drwy sicrhau nad oes treth ar y mwyafrif o drafodiadau wrth brynu cartref. Mae ein trothwy presennol ar gyfer y dreth trafodiadau tir, sef £180,000, nid yn unig yn golygu mai ni yw'r unig wlad yn y DU sydd â throthwy cychwynnol sy'n uwch na phris cyfartalog cartref, ond mae hefyd yn golygu nad yw tua 60% o bobl sy'n prynu cartref yn talu treth.


Serch hynny, er gwaethaf y trothwy treth cychwynnol mwyaf blaengar yn y DU, rwyf heddiw’n cyhoeddi newidiadau i gyfraddau a throthwyon y dreth trafodiadau tir. Mae'r cyfraddau a'r trothwyon hyn wedi'u gosod er mwyn adlewyrchu'r farchnad eiddo yng Nghymru gan sicrhau ein bod yn cynnal trefn flaengar sy'n disgwyl i'r mwyaf cefnog gyfrannu mwy mewn treth. 


Rwyf felly wedi penderfynu y bydd y trothwy cychwynnol ar gyfer prif gyfraddau preswyl y dreth trafodiadau tir yn cael ei osod ar £250,000 o 27 Gorffennaf ymlaen. Mae'r trothwy newydd hwn £70,000 yn uwch na'n trothwy cychwynnol presennol ar gyfer trafodiadau eiddo preswyl a bydd yn golygu mai dim ond tua 20% o'r rhai sy’n agored i brif gyfraddau'r dreth trafodiadau tir fydd yn talu unrhyw dreth o gwbl. Bydd y rhai sy'n prynu eiddo sy'n costio mwy na £250,000 yn arbed £2,450 o'i gymharu â'r hyn y byddent wedi'i dalu yn flaenorol. 


Ni fydd y newidiadau hyn yn gymwys i'r rhai sy'n prynu eiddo sy'n agored i'r cyfraddau uwch. Bydd y cyfraddau a'r trothwyon ar gyfer y rhai sy’n prynu eiddo preswyl fel buddsoddiad neu fel ail gartref yn aros fel y maent. Mae'r gostyngiad hwn yn y dreth wedi'i dargedu er mwyn cefnogi trethdalwyr sy'n talu prif gyfraddau'r dreth trafodiadau tir (yn fras, y rhai sy'n prynu eu cartref) ac sydd efallai angen cymorth ychwanegol yn sgil y pandemig. 


Serch hynny, er fy mod yn gallu darparu ar gyfer y gostyngiad hwn yn y dreth, yn unol ag egwyddorion y Llywodraeth Cymru hon, gallaf gadarnhau y byddwn yn mynd ati mewn ffordd wahanol i fynd i'r afael â phroblemau tai ehangach sy'n wynebu'r rhai sydd â'r angen mwyaf. Heddiw, gallaf hefyd gyhoeddi £30m ar gyfer y Rhaglen Tai Cymdeithasol a fydd yn rhoi cymorth ychwanegol i weithgareddau amrywiol i hybu gwaith adeiladu yn y sector tai cymdeithasol.


Gyda'i gilydd, mae'r newidiadau i'r dreth a'r ymrwymiad gwario yn sicrhau:


* na fydd tua 80% o'r rhai sy'n prynu cartref yn talu treth wrth brynu eu cartref
* y bydd pawb sy'n prynu eiddo preswyl a fyddai wedi talu prif gyfraddau'r dreth trafodiadau tir cyn 27 Gorffennaf yn arbed hyd at £2,450
* cyllid i hybu gwaith adeiladu yn y sector tai cymdeithasol, gan ddarparu mwy o dai yn y sector hwn a hwb economaidd i'r sector adeiladu pwysig ac i'r economi yn ehangach.


Mae tabl wedi'i atodi sy'n dangos y prif gyfraddau a bandiau treth, a'r rhai uwch, a fydd mewn grym rhwng 27 Gorffennaf ac 31 Mawrth 2021\.


 


**Trafodiadau Eiddo Preswyl**


**Cyfraddau a Throthwyon rhwng 27 Gorffennaf 2020 ac 31 Mawrth 2021**


 




| **Prif gyfraddau trafodiadau eiddo preswyl**      *Band treth* | *Cydnabyddiaeth berthnasol* | *Canran y gyfradd dreth* | **Cyfraddau uwch trafodiadau eiddo preswyl**      *Band treth* | *Cydnabyddiaeth berthnasol* | *Canran y gyfradd dreth* |
| --- | --- | --- | --- | --- | --- |
| Band cyfradd sero | Dim mwy na £250,000 | 0% | Band treth cyntaf | Dim mwy na £180,000 | 3% |
| Band treth cyntaf | Mwy na £250,000 ond dim mwy na £400,000 | 5% | Ail fand treth | Mwy na £180,000 ond dim mwy na £250,000 | 6\.5% |
| Ail fand treth | Mwy na £400,000 ond dim mwy na £750,000 | 7\.5% | Trydydd band treth | Mwy na £250,000 ond dim mwy na £400,000 | 8% |
| Trydydd band treth | Mwy na £750,000 ond dim mwy nag £1,500,000 | 10% | Pedwerydd band treth | Mwy na £400,000 ond dim mwy na £750,000 | 10\.5% |
| Pedwerydd band treth | Mwy nag £1,500,000 | 12% | Pumed band treth | Mwy na £750,000 ond dim mwy nag £1,500,000 | 13% |
|  |  |  | Chweched band treth | Mwy nag £1,500,000 | 15% |
|  |  |  |  |  |  |