Since April 2018, the Welsh government replaced Stamp Duty with Land Transaction Tax (LTT). The thresholds for LTT are different to the UK Stamp Duty, so if you’re buying a property in Wales, keep reading to find out how much tax you may have to pay.
What is Land Transaction Tax?
Land Transaction Tax (LTT) is a tax you may have to pay if the land or property you’re buying in Wales is over a certain price.
How much will I have to pay?
You’ll have to pay LTT if the property you’re buying is £225,000 or more, or over £40,000 if it’s a second home. The amount of tax you’ll have to pay is worked out using a tier system where the amount of tax you pay will depend on the price of the property.
Land Transaction Tax (LTT) rates if you only own one home:
| Property purchase price bands | Rate of tax you'll pay |
| Less than £225,000 | 0% |
| £225,001 - £400,000 | 6% |
| £400,001 - £750,000 | 7.5% |
| £750,001 - £1.5m | 10% |
| £1.5m+ | 12% |
Land Transaction Tax (LTT) rates if you’re buying a second home:
| Property purchase price bands | Rate of tax you'll pay |
| Up to £180,000 | 5% |
| £180,001 - £250,000 | 8.5% |
| £250,001 - £400,000 | 10% |
| £400,001 - £750,000 | 12.5% |
| £750,001 - £1.5m | 15% |
| £1.5m+ | 17% |
How do you pay LTT?
You will need to submit a tax return. This needs to be completed whether you need to pay LTT or not. Your solicitor will be able to help you with this. You have 30 days after buying your property to pay the tax.
Get in touch
For further information on the costs you need to consider when buying a property, get in touch with our helpful team of advisers.
For specific information about Land Transaction Tax, please contact your solicitor.
We can put you in touch with an adviser local to you who can offer flexible appointments.
In the meantime, see how much LTT you might have to pay with our Welsh Stamp Duty calculator.
Important information
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.