How much is Land Transaction Tax in Wales?

LTT in Wales uses a progressive system. Main rates: 0% up to £225,000, 6% from £225,001-£400,000, 7.5% from £400,001-£750,000, 10% from £750,001-£1.5m, 12% over £1.5m. Higher rates (additional 4%) apply to second homes.

Do first-time buyers pay Land Transaction Tax Wales?

Unlike England's Stamp Duty, there's NO specific first-time buyer relief in Wales. All buyers pay the same LTT rates. However, the £225,000 starting threshold means most FTBs in Wales pay little or no LTT anyway.

What is the difference between Stamp Duty and LTT Wales?

LTT (Wales) and SDLT (England) are separate taxes with different rates and thresholds. LTT has a £225,000 nil-rate band (vs £250,000 in England). No Welsh FTB relief. Higher rates structure differs. Welsh Revenue Authority collects LTT.

When do you pay LTT in Wales?

LTT must be paid within 30 days of completion. Your solicitor usually handles this. Late payment incurs penalties and interest. You can't register ownership at Land Registry until LTT is paid.

Land Transaction Tax Wales Explained — LTT Rates & Calculator | PocketWise

Land Transaction Tax (LTT) applies to property purchases in Wales. Here’s everything you need to know.

LTT vs Stamp Duty

Key Differences

Feature	Wales (LTT)	England (SDLT)
Starting threshold	£225,000	£250,000
First-time buyer relief	No	Yes (up to £425k)
Additional property	+4%	+5%
Administered by	Welsh Revenue Authority	HMRC

Which Applies to You

Location	Tax
Property in Wales	LTT
Property in England	SDLT
Property in Scotland	LBTT
Where you live	Doesn’t matter — it’s where property is

Current LTT Rates (2025/26)

Main Residential Rates

Property Price Band	LTT 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%

Higher Rates (Additional Properties)

Property Price Band	Higher Rate
£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%

Non-Residential/Mixed Use

Price Band	Rate
£0 - £225,000	0%
£225,001 - £250,000	1%
£250,001 - £1,000,000	5%
Over £1,000,000	6%

LTT Calculations

How It Works (Main Rates)

Purchase Price £300,000	Calculation
First £225,000	£0 (0%)
Next £75,000 (to £300k)	£4,500 (6%)
Total LTT	£4,500

More Examples

Property Price	Total LTT	As % of Price
£200,000	£0	0%
£225,000	£0	0%
£250,000	£1,500	0.6%
£300,000	£4,500	1.5%
£350,000	£7,500	2.1%
£400,000	£10,500	2.6%
£450,000	£14,250	3.2%
£500,000	£18,000	3.6%

Higher Rates Examples (Second Homes/BTL)

Property Price	Main Rate	Higher Rate	Difference
£200,000	£0	£8,000	+£8,000
£300,000	£4,500	£18,450	+£13,950
£400,000	£10,500	£30,850	+£20,350
£500,000	£18,000	£44,000	+£26,000

First-Time Buyers in Wales

No Specific Relief

Important	Wales Has No FTB Relief
Unlike England	No enhanced nil-rate band
Unlike Scotland	No Additional Dwelling Supplement exemption
Main rates apply	To everyone

Why It May Not Matter Much

Comparison	Wales	England (FTB)
£225,000 property	£0 LTT	£0 SDLT
£250,000 property	£1,500 LTT	£0 SDLT
£300,000 property	£4,500 LTT	£0 SDLT
£400,000 property	£10,500 LTT	£0 SDLT
£425,000 property	£12,375 LTT	£0 SDLT

Average Welsh House Prices

Area	Average Price	LTT Due
Wales average	~£215,000	£0
Cardiff	~£280,000	£3,300
Swansea	~£195,000	£0
Newport	~£235,000	£600
Pembrokeshire	~£245,000	£1,200

Higher Rates Explained

When Higher Rates Apply

Situation	Higher Rates?
Buying second home	Yes
Buy-to-let purchase	Yes
Company buying residential	Yes
Replacing main residence	Usually no
First property ever	No

Main Residence Replacement

Rule	Details
Buying before selling	Higher rates apply initially
Sell within 3 years	Claim refund of extra
Refund claim	Within 12 months of selling

Claims and Refunds

Situation	Action
Paid higher rates, now sold old home	Claim refund
Inherit property while buying	May be exempt
Divorce/separation	Special rules

Paying LTT

Timeline

Event	Deadline
Complete purchase	Day 0
File return	Within 30 days
Pay tax	Within 30 days
Land Registry registration	After LTT paid

How Payment Works

Step	Who Does It
Calculate LTT	Solicitor
File return	Solicitor
Collect from you	Solicitor (at completion)
Pay WRA	Solicitor

Penalties for Late Payment

Lateness	Penalty
1 day late	£100
3 months late	Additional £300
6 months late	5% of tax due
12 months late	Further 5%
Plus	Interest charges

Exemptions and Reliefs

Fully Exempt Transactions

Transaction	LTT Due
Property under £225,000 (residential)	£0
Inheritance	Exempt
Gifts (usually)	Exempt
Divorce/dissolution transfers	Exempt
Charity purchases	Exempt

Partial Reliefs

Relief	Conditions
Multiple dwellings relief	3+ properties in one transaction
Group relief	Company transfers
Charities relief	Qualifying purposes

Welsh Revenue Authority

Contact Details

Method	Details
Website	gov.wales/welsh-revenue-authority
Phone	03000 254 000
Post	Welsh Revenue Authority, Box 110, Pontypridd, CF37 9EH

Online Services

Service	Available
LTT calculator	Online at gov.wales
File returns	Online for professionals
Check payment	WRA online services

Comparing to Other UK Nations

£300,000 Property

Location	Tax Due
Wales (LTT)	£4,500
England (SDLT)	£2,500
England (FTB)	£0
Scotland (LBTT)	£4,600

£500,000 Property

Location	Tax Due
Wales (LTT)	£18,000
England (SDLT)	£12,500
England (FTB)	£3,750
Scotland (LBTT)	£23,350

Summary

Key Points

Point	Detail
Applies to	Property in Wales
Threshold	£225,000
No FTB relief	Unlike England
Higher rates	+4% for additional properties
Payment deadline	30 days

Tax Rates Summary

Band	Main Rate	Higher Rate
£0-225k	0%	4%
£225k-400k	6%	9%
£400k-750k	7.5%	11.5%
£750k-1.5m	10%	14%
Over £1.5m	12%	16%

Checklist

Action	Done?
Check property is in Wales (not England)	☐
Calculate LTT due	☐
Check if higher rates apply	☐
Budget for payment at completion	☐
Solicitor will arrange payment	☐