Land Transaction Tax (LTT), Wales
LTT is the Welsh equivalent of Stamp Duty, and is the tax charged by the Government in Wales when you buy a home.
Land Transaction Tax (LTT) is a tax you may need to pay when buying a residential property or land in Wales. It applies to leaseholds and freeholds, whether purchased outright or with a mortgage.
Learn more about how and when to pay, as well as the LTT rates for first-time buyers and existing homeowners.
Why do I have to pay LTT?
When you buy a new home or piece of land in Wales, the change of ownership needs to be registered with the Land Registry. The Welsh Revenue Authority (WRA) will collect the tax and issue a certificate on receipt of the payment.
LTT rates for first-time buyers
If your home costs up to £225,000, you’re exempt from LTT. If it costs more, the below rates apply:
| Purchase price | LTT rate |
| £0 to £225,000 |
0% |
| £225,001 to £400,000 |
6% |
| £400,001 to £750,000 |
7.5% |
| £750,001 to £1,500,000 |
10% |
| Over £1,500,000 |
12% |
Example
Your new home costs £300,000. Your LTT is calculated as follows:
• 0% on the first £225,000 = £0
• 6% on the remaining £75,000 = £4,500
• Total LTT = £4,500
LTT rates on second homes
Property investors and existing homeowners are exempt from LTT on the first £40,000. Then, the following rates apply:
| Purchase price | LTT rate |
| £40,000 to £180,000 |
4% |
| £180,001 to £250,000 |
7.5% |
| £250,001 to £400,000 |
9% |
| £400,001 to £750,000 |
11.5% |
| £750,001 to £1,500,000 |
14% |
| Over £1,500,000 |
16% |
Example
Your buy-to-let property or second home costs £240,000. Your total LTT will be:
• 0% on the first £40,000 = £0
• 7.5% on the remaining £200,000 = £15,000
• Total LTT = £15,000
LTT exemptions
You’re exempt from LTT if:
• The property is left in a will
• The property is transferred following a divorce
• The property is a freehold and worth less than £40,000
• The property is a leasehold and worth less than £40,000, the annual rent is less than £1,000, and the lease is seven years or more
When can I pay LTT?
You need to submit an LTT return and pay the amount to the Welsh Revenue Authority (WRA) within 30 days from the day after completion.
WRA may charge you a penalty and interest if you fail to submit or you’re late.
How do I pay LTT?
Your solicitor will file the LTT return on your behalf. If you’re not using a solicitor, you can do it online or submit a paper return.
If your house costs less than £250,000, you still need to submit a return.
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LTT FAQs
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Yes, first-time buyers in Wales are required to pay Land Transaction Tax (LTT) if the property they are buying costs more than £225,000.
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SDLT is the stamp duty tax in England and Northern Ireland, while LTT is the land transaction tax in Wales. The rates differ between Stamp Duty and LTT, find out more about Stamp Duty here.
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LTT in Wales is calculated based on a tiered system, where different rates apply to different portions of the property purchase price. The rates range from 0% to 12%.
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