This Land Transaction Tax (LTT) Calculator helps you estimate the tax you’ll need to pay when buying property in Wales. LTT is a key cost to consider, as it can significantly affect your total outlay when purchasing a home or investment property. LTT replaced Stamp Duty in Wales in 2018 and applies to both residential and commercial property purchases.
How This Land Transaction Tax (LTT) Calculator Works
Our calculator is designed to make it easy to estimate your LTT bill:
- Enter your property purchase price
- Select your buyer status (main home or second home)
- Instantly see your estimated LTT due, broken down by tax band
You’ll also get a summary table showing how much tax is charged at each band.
If you are purchasing a home in England or Northern Ireland, check out our Stamp Duty Land Tax (SDLT) Calculator.
When Do You Need to Pay LTT in Wales?
LTT is due on most property purchases over £225,000 for main homes, or over £40,000 for second homes and buy-to-let properties. You must pay LTT within 30 days of completion, and your solicitor will usually handle the payment as part of the conveyancing process.
2025 Land Transaction Tax (LTT) Rates in Wales
The amount of LTT you’ll pay depends on whether you’re buying your main home or an additional property. The following tables break down the rates for each scenario. Each portion of your property price is taxed at a different rate (“slices”), so your total bill is a combination of these bands.
Main Home (First Home or Moving Home)
If you’re buying your main residence in Wales, you’ll pay LTT according to the following bands. The first £225,000 is tax-free, which helps many buyers avoid LTT altogether. As the property price increases, each portion above the threshold is taxed at a higher rate. Here are the current rates for 2025:
| Property Price | Tax Rate |
|---|---|
| Up to £225,000 | 0.00% |
| £225,001 – £400,000 | 6.00% |
| £400,001 – £750,000 | 7.50% |
| £750,001 – £1,500,000 | 10.00% |
| Over £1,500,000 | 12.00% |
Second Homes & Buy-to-Let
If you’re buying a second home or a buy-to-let property, you’ll pay higher LTT rates. These higher rates are designed to discourage property speculation and make it easier for first-time buyers to get on the ladder. The table below shows the rates for 2025:
| Property Price | Tax Rate |
|---|---|
| Up to £180,000 | 5.00% |
| £180,001 – £250,000 | 8.50% |
| £250,001 – £400,000 | 10.00% |
| £400,001 – £750,000 | 12.50% |
| £750,001 – £1,500,000 | 15.00% |
| Over £1,500,000 | 17.00% |
Example: LTT Calculation for a Main Home
Let’s say you’re buying a main residence for £350,000:
- First £225,000: 0% = £0
- Next £125,000 (£225,001–£350,000): 6% = £7,500
Total LTT due: £7,500
Key Points to Remember
LTT is just one of several costs you’ll face when buying property in Wales. Being aware of the rules and thresholds can help you avoid surprises and plan your budget more effectively. Keep these points in mind:
- LTT is paid in “slices”—each portion of the price is taxed at its own rate.
- Second homes and buy-to-let properties pay higher rates.
- LTT is separate from other costs like legal fees, surveys, and mortgage charges.
Frequently Asked Questions
Do I pay LTT on new builds?
Yes, LTT applies to both new builds and existing properties.
Can I claim back the higher rates if I sell my main home?
Yes, if you sell your previous main residence within a certain period, you may be eligible for a refund.
Are there exemptions?
Some transactions (e.g., certain transfers between spouses) may be exempt. Check with your solicitor for details.
What happens if I don’t pay LTT on time?
Penalties and interest may apply, so it’s important to pay promptly.