If you’re buying a home in Wales you will pay Land Transaction Tax (LTT) if the property costs more than £225,000, up from the previous threshold of £180,000. If you’re buying an additional property, you will need to pay the higher residential rates for each band.
What is Land Transaction Tax?
Land Transaction Tax (LTT) calculator
In Wales. find out how much Land Transaction Tax you'll pay using our Land Transaction Tax calculator
Land Transaction Tax (LTT) is a tax you might have to pay if you buy a residential property or piece of land in Wales.
You will not have to pay LTT on properties costing up to £225,000.
If you’re buying a second home, you’ll pay the higher residential rates of LTT on properties costing more than £40,000.
This tax applies to both freehold and leasehold properties – whether you’re buying outright or with a mortgage.
If you’re buying in Scotland, find out more about Land and Buildings Transaction Tax
If you’re buying in England or Northern Ireland, find out more about Stamp Duty
How much is Land Transaction Tax?
There are several rate bands for Land Transaction Tax (LTT).
The tax is calculated on the part of the property purchase price falling within each band.
For example, if you buy a house for £410,000, the LTT you owe is calculated as follows:
0% on the first £225,000 = £0
6% on the next £175,000 = £10,500
7.5% on the next £10,000 = £750
Total LTT = £11,250
Land Transaction Tax (LTT) rates
| Minimum property purchase price | Maximum property purchase price | Stamp Duty rate |
|---|---|---|
|
£0 |
£225,000 |
0% |
|
£225,001 |
£400,000 |
6% |
|
£400,001 |
£750,000 |
7.5% |
|
£750,001 |
£1,500,000 |
10% |
|
Over £1,500,000 |
12% |
Land Transaction Tax on second homes
Buyers of additional residential properties, such as second homes and some buy-to-let properties, will have to pay the higher residential rates of Land Transaction Tax (LTT) on properties costing more than £40,000.
| Minimum property purchase price | Maximum property purchase price | Stamp Duty rate (only applies to the part of the property price falling within each band) |
|---|---|---|
|
£0 |
£180,000 |
4% |
|
£180,001 |
£250,000 |
7.5% |
|
£250,001 |
£400,000 |
9% |
|
£400,001 |
£750,000 |
11.5% |
|
£750,001 |
£1,500,000 |
14% |
|
Over £1,500,000 |
16% |
When do you have to pay Land Transaction Tax?
You’ll need to submit a Land Transaction Tax (LTT) return and pay what you owe to the Welsh Revenue Authority within 30 days of the day after completion (or other effective date of the transaction).
If you don’t submit a return and pay the tax, Welsh Revenue Authority might charge you penalties and interest.
How to pay Land Transaction Tax
Usually your solicitor will deal with the Land and Transaction Tax (LTT) return, although you can do it yourself.
Either way, you’re responsible for making sure it’s all submitted on time.
If the price of your new home is under £225,000, you must still submit a return (unless exempt) even though you won’t need to pay any LTT.
