Welsh Government has raised the Land Transaction Tax threshold in Wales to £250,000 - and announced a £30m stimulus package for the housebuilding sector.
On Wednesday 海角视频 Government chancellor Rishi Sunak announced that the Stamp Duty threshold before any tax is paid in England and Northern Ireland was being hiked from £125,000 to £500,000.
The tax break did not apply in Wales but Welsh Government will receive additional funding to implement a similar policy.
The Government in Cardiff has been under pressure from the housing sector to implement the same change in Wales - where the current threshold before paying Land Transaction Tax is £180,000.
Today Finance Minister Rebecca Evans said in Wales - where average house prices (£162K) are lower than in England (£248K)- that the threshold would rise to £250,000.
Unlike in England it will not apply to the purchase of additional properties such as buy to lets or second homes.
The new threshold will mean that no tax will be paid on around 80% of transactions in Wales where the main residential rates apply.
The different approach will free up around £30 million to invest in a different, even more direct stimulus to the housebuilding industry.
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The Finance minister said: "Last Wednesday, the 海角视频 Chancellor announced temporary changes to stamp duty land tax which applies only to England and Northern Ireland.
"That stamp duty land tax holiday up to £500,000 – applies to all types of residential purchases.
"So the 海角视频 Government is putting money in the pockets of potential house buyers whether they are buying a starter home in Newcastle, expanding their buy-to-let empire in Leeds or purchasing a holiday home in Cornwall.
"No measures were announced to support those who find themselves without work or without a home at all.
"Whilst this tax is now devolved with decisions taken here in Wales, it is obviously the case that decisions made on one side of our border affect housing markets on the other – especially during a pandemic.
"Since Wednesday, we have worked quickly to identify what, if any, change we should make to Land Transaction Tax to meet the needs of the Welsh economy and the housing market in Wales.
"Our goal has been to ensure the fairest balance between lifting the threshold to help encourage growth whilst also to provide funding for the urgent pressures affecting so many people in this crisis.
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"I can today confirm that I am increasing the main starting rate for Land Transaction Tax so that no tax will be paid on main residential property purchases for less than £250,000.
"This will take effect on 27 July to coincide with the full reopening of the housing market in Wales.
"This is a tax holiday that will last until 31 March 2021."
She added: "It will support people looking to purchase their first home or those seeking to move up the property ladder. So it will offer more targeted help to those who may be affected by the economic challenges resulting from the pandemic.
"The new threshold will mean that no tax will be paid on around 80% of transactions in Wales where the main residential rates apply. With a higher threshold for starting to pay tax, those purchasing more expensive properties will still pay less – where the home is bought for them to live in.
"We are taking a different approach in Wales.
"And as a result, this decision will not only provide support to homebuyers, it will also free up some £30 million to invest in a different, even more direct stimulus to the housebuilding industry.
"I am pleased to confirm that this funding will be committed to the construction of modern social homes, supporting jobs and securing a decent place to call home for those who need it.
"We will say more about how this investment be will be deployed in due course.
"But a boost of this level of could support the construction of nearly 400 much-needed new, energy efficient social homes in Wales."