Glossary

Land Transaction Tax

Land Transaction Tax is the tax a buyer pays on a property purchase in Wales. It replaced Stamp Duty Land Tax in Wales in April 2018.

Land Transaction Tax, or LTT, is the tax a buyer pays when they buy property or land in Wales. It is collected by the Welsh Revenue Authority, not HM Revenue and Customs.

It replaced Stamp Duty Land Tax in Wales on 1 April 2018. The rates and bands are set by the Welsh Government and differ from those in England.

Main residential rates

The tax is charged in bands, and each rate applies only to the part of the price within its band. The main rates are 0% up to £225,000, 6% from £225,001 to £400,000, 7.5% from £400,001 to £750,000, 10% from £750,001 to £1.5 million, and 12% above £1.5 million.

As an example, on a £300,000 home the buyer pays nothing on the first £225,000 and 6% on the remaining £75,000. That makes £4,500 in total.

No separate first-time buyer relief

Unlike England, Wales has no separate relief for first-time buyers. Because the main rates start at £225,000, many first-time buyers in Wales pay no tax, but they pay the same rates as anyone else buying a single home.

Higher rates for additional homes

Higher residential rates apply to most purchases of an additional home, such as a second home or a buy-to-let, and to most purchases by companies. They do not usually apply when the buyer is replacing their main home.

The higher rates are 5% up to £180,000, 8.5% from £180,001 to £250,000, 10% from £250,001 to £400,000, 12.5% from £400,001 to £750,000, 15% from £750,001 to £1.5 million, and 17% above £1.5 million. On the same £300,000 example, the higher rates come to £19,950.

Paying the tax

The return and payment are due within 30 days of the effective date, which is usually completion. The buyer's conveyancer normally deals with it as part of conveyancing.

Related terms

Stamp Duty Land Tax · Buy-to-let · Completion · Conveyancing · Price Paid Data

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