Fact sheet: 'Replacement of Domestic Items’ relief for landlords

HM Revenue and Customs (HMRC) has seen a spike in Stamp Duty Land Tax (SDLT) repayment requests where it’s claimed a property is not suitable for use (NSFU) as a dwelling so the lower, non-residential rates of SDLT apply. However, over 95% of NSFU claims are found to fall well below the required threshold, leaving property owners at risk of penalties.

In our consultation response, we urged the Welsh Government to reconsider plans to scrap the tax relief, citing the potential for loss of homes and the disproportionate impact on vulnerable tenants. Welsh Finance Secretary Mark Drakeford, MS, has now confirmed that The Land Transaction Tax (Modification of Relief for Acquisitions Involving Multiple Dwellings) (Wales) Regulations 2025, which will take effect on 7 February 2025, will change the rules for tax relief but not abolish it.

Cabinet Secretary for Finance and Local Government Shona Robison, MSP, announced a Budget which, she said would deliver on the priorities of the people of Scotland despite persistent financial pressures. However, her measures do little to address the ongoing housing crisis, and a decision to increase the Additional Dwelling Supplement will discourage new landlords from entering the sector.

Propertymark calls for fiscal policy geared towards stimulating supply in the private rented sector, boosting homeownership, and tackling the scourge of empty commercial properties that blight Welsh communities.