What Is Land Transaction Tax?
Land Transaction Tax (LTT) is the property purchase tax in Wales. It replaced Stamp Duty Land Tax (SDLT) on 1 April 2018 and is administered by the Welsh Revenue Authority (WRA). Like SDLT and LBTT, LTT uses a progressive band system where each rate applies only to the portion of the purchase price within that band.
If you are buying in England or Northern Ireland, use our Stamp Duty calculator. For Scotland, use the LBTT calculator.
Current LTT Rates for 2025/26
Standard Residential Rates
| Purchase Price Band | LTT Rate |
|---|---|
| Up to £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)
When purchasing a second home, buy-to-let, or other additional residential property, an extra 6% is added to each band. The higher rates apply to properties costing more than £40,000:
| Purchase Price Band | Higher LTT Rate |
|---|---|
| Up to £225,000 | 6% |
| £225,001 – £400,000 | 12% |
| £400,001 – £750,000 | 13.5% |
| £750,001 – £1,500,000 | 16% |
| Over £1,500,000 | 18% |
How LTT Is Calculated
LTT uses the same progressive slice principle as income tax. You pay each rate only on the portion falling within that band.
Example: Buying a £300,000 Home in Wales (Standard Rates)
| Band | Amount in Band | Rate | LTT Due |
|---|---|---|---|
| £0 – £225,000 | £225,000 | 0% | £0 |
| £225,001 – £300,000 | £75,000 | 6% | £4,500 |
| Total | £4,500 |
Example: Additional Property at £300,000 in Wales
| Band | Amount in Band | Rate | LTT Due |
|---|---|---|---|
| £0 – £225,000 | £225,000 | 6% | £13,500 |
| £225,001 – £300,000 | £75,000 | 12% | £9,000 |
| Total | £22,500 |
The higher rates add £18,000 to the bill in this example — a substantial cost for buy-to-let investors and second-home buyers in Wales.
Key Differences from SDLT
| Feature | LTT (Wales) | SDLT (England & NI) |
|---|---|---|
| Nil-rate threshold | £225,000 | £125,000 |
| First-time buyer relief | No | Yes (up to £625,000) |
| Additional property surcharge | 6% | 5% |
| Non-UK resident surcharge | No | 2% |
| Administered by | Welsh Revenue Authority | HMRC |
| Filing deadline | 30 days | 14 days |
Wales has a notably higher nil-rate band (£225,000 vs £125,000), which means buyers of lower-value properties often pay less LTT than they would in SDLT. However, the absence of first-time buyer relief and the higher additional property surcharge (6% vs 5%) can make Wales more expensive for certain buyers.
No First-Time Buyer Relief
Unlike England, Northern Ireland, and Scotland, Wales does not offer first-time buyer relief for LTT. All buyers pay the same standard rates regardless of whether they have previously owned property. The Welsh Government has stated that the higher nil-rate threshold of £225,000 already provides significant help, as no LTT is due on properties up to this price.
Paying LTT
Your solicitor or conveyancer files the LTT return and arranges payment to the Welsh Revenue Authority. The return must be submitted and the tax paid within 30 days of completion. Late filing or payment can result in penalties and interest charges.
When planning a property purchase in Wales, include LTT in your total buying costs alongside your deposit, solicitor fees, and survey costs. Use our mortgage calculator to estimate your monthly repayments and our mortgage affordability calculator to check what you can borrow.
Frequently Asked Questions
Answers to common LTT questions are provided in the FAQ section above. For the latest rates and official guidance, visit the Welsh Revenue Authority website.