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Land Transaction Tax: stamp duty in Wales

Find out the current Land Transaction Tax (LTT) rates and use our LTT calculator to work out how much you'll need to pay when buying a property in Wales.

In this article
LTT (Welsh stamp duty) calculator COVID-19: LTT rates until 31 March What is Land Transaction Tax (LTT)? LTT rates for home movers
Buy-to-let LTT rates (also applies to second/holiday homes) LTT for first-time buyers How to pay LTT

LTT (Welsh stamp duty) calculator

Use our calculator to find out how much LTT you'll need to pay when you buy a property in Wales.

COVID-19: LTT rates until 31 March

The Land Transaction Tax (LTT) threshold in Wales will temporarily increase from 27 July 2020, as the government seeks to reignite the property market in the wake of the COVID-19 outbreak.

The new rules mean LTT will only apply on purchases of more than £250,000, rather than the current threshold of £180,000.

Homes bought between 27 July 2020 and 31 March 2021 will be eligible for the new rates, which are shown in the table below.

The new rates do not apply to purchasers of buy-to-let properties and second homes, who must continue to pay the existing buy-to-let rates

Portion of property price LTT rate
£0-£250,000 0%
£250,001-£400,000 5%
£400,001-£750,000 7.5%
£750,001-£1.5m 10%
£1.5m 12%

 

What is Land Transaction Tax (LTT)?

Land Transaction Tax (LTT) is the tax paid on property transactions in Wales.

It's the Welsh equivalent of the stamp duty that people pay in England and Northern Ireland, or Land and Buildings Transaction Tax (LBTT) in Scotland.

LTT is one of the tax liabilities that has been devolved from the Westminster government, and it replaced stamp duty land tax in Wales in 2018.

LTT rates for home movers

**LTT rates will soon change due to a temporary LTT holiday. The information below is based on the regular rates, which will be back in place from April 2021. See above for information on the temporary lower rates.**

Under the LTT system, if you're buying a property you intend to live in as your main residence, tax will only be payable if the property costs more than £180,000 - well above the £125,000 stamp duty threshold in England and Northern Ireland. 

However, first-time buyers in Wales don't get any discounts or exemptions, unlike those buying their first home in the rest of the UK.

Like stamp duty and income tax, LTT is tiered, meaning you pay different rates on different portions of the property price.

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The table below shows the LTT rates payable on residential properties.

Portion of property price LTT rate
£0-£180,000 0%
£180,001-£250,000 3.5%
£250,001-£400,000 5%
£400,001-£750,000 7.5%
£750,001-£1.5m 10%
£1.5m+ 12%

Buy-to-let LTT rates (also applies to second/holiday homes)

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Second homes and buy-to-let properties will be charged at 3% more than the main residential rates, but properties costing £40,000 or less are exempt. 

Additional LTT paid at the higher rates can be refunded if you sell your main residence and the property you paid higher rates on becomes your main residence within 36 months of completion.

First-time buyers purchasing a buy-to-let property will only need to pay the standard home-buyer rates.

Portion of property price LTT rate
£0-£180,000 3%
£180,001-£250,000 6.5%
£250,001-£450,000 8%
£450,001-£750,000 10.5%
£750,001-£1.5m 13%
£1.5m+ 15%

LTT for first-time buyers

**LTT rates will soon change due to a temporary LTT holiday. The information below is based on the regular rates, which will be back in place from April 2021. See above for information on the temporary lower rates.**

First-time buyers are currently charged the same rate of LTT as home movers. 

This is in contrast to the stamp duty system in England, where people buying a first home costing £300,000 or less are exempt, and those buying a property between £301,000 and £500,000 are charged a reduced rate. 

However, first-time buyers purchasing buy-to-let properties will be charged the standard home-buyer rates of LTT, escaping the buy-to-let surcharge.

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How to pay LTT

LTT is collected by the Welsh Revenue Authority (WRA).

Your solicitor will usually deal with the LTT return as part of the property transaction, but it's your responsibility to make sure it's submitted on time. 

The LTT return must have been sent to WRA, and the tax paid, within 30 days after completion.

If your solicitor doesn't do this for you, you can do it yourself using a paper return.

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