The headlines have called it the first Welsh tax for 800 years, but what exactly is the land transaction tax and how will it affect people looking to buy or rent?

Emily Samuel, letting agency manager for Newport-based serenliving, outlines everything you need to know.

If you’ve bought or sold a property recently you might be familiar with stamp duty land tax. Payable in increasing amounts on residential properties valued over £125,000 and non-residential land and properties valued over £150,000, the tax applies in England, Wales and Northern Ireland.

But that is all set to change from April 2018, when the Welsh Government hopes to start its first ever devolved tax system with the new land transaction tax.

This Wales-only tax, introduced to the National Assembly this week in the Land Transaction Tax and Anti-avoidance of Devolved Taxes Bill, will replace UK stamp duty land tax.

It will be debated by AMs and is expected to receive Royal Assent next spring. It should then be introduced in April 2018.

Like stamp duty, the new tax is payable when you buy or lease a building or land over a certain price.

It will affect anyone associated with the housing market, including home buyers and sellers as well as businesses involved in the process such as builders, property developers, solicitors and conveyancers.

Welsh Government finance secretary Mark Drakeford has said the tax will 'broadly mirror' stamp duty land tax, providing 'consistency and stability' for businesses and a 'smooth transaction' for home buyers and the property market.

We’ve been promised an announcement about the rates and bands for the proposed tax closer to spring 2018, which will apparently take into account economic conditions at the time.

Until these are announced we know very little about how buyers and sellers will be impacted by the new tax.

However, we do know the rent element of new residential leases will be exempt from tax under the new system, as only a very small amount of revenue is collected from this rent in Wales.

The government says this will simplify the tax and may reduce some administrative burden.

It will be interesting to see if recently introduced rules for homeowners with more than one property are carried over into the new regime.

New legislation added an extra three per cent to the stamp duty of those buying a second property from 1 April this year.

The aim was to reduce competition between buy-to-let landlords and first-time buyers in the starter home market, particularly in areas such as London and the south east where property prices are soaring.

The Welsh Government says the higher rates are “under consideration” in Wales as part of this legislation.

Ultimately we will have to wait until the final bill is passed and the rates and bands announced before we know exactly how buyers and sellers will be affected.

But the government has assured the housing market that any changes have been made to either simplify the tax, to improve its efficiency and effectiveness, or to enable a focus on Welsh needs and priorities.