Land Transaction Tax in Wales

How Land Transaction Tax (LTT) works in Wales, including current rates for residential, non-residential, and additional property purchases. LTT replaced Stamp Duty Land Tax in Wales from April 2018 and is administered by the Welsh Revenue Authority.

Wales
Guide summary

If you buy or lease property in Wales, you must pay Land Transaction Tax (LTT) instead of Stamp Duty. File a return with the Welsh Revenue Authority within 30 days of purchase. Check the rates as they differ for residential, non-residential, and additional properties.

  • Pay LTT when buying property in Wales, not Stamp Duty
  • File a return with the Welsh Revenue Authority within 30 days
  • Residential nil-rate threshold is £225,000
  • Higher rates apply for additional properties like second homes
  • Non-residential rates start at 0% up to £225,000
  • LTT is a progressive tax, so you pay different rates on portions of the price
  • 60% of Welsh residential transactions pay no LTT
  • Use the WRA online service or paper forms to file
  • Solicitors usually handle the filing process
  • Check current rates as they change periodically
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Wales

Related guides in Tax & Finance

If you buy or lease land or property in Wales, you pay Land Transaction Tax (LTT), not Stamp Duty Land Tax (SDLT). LTT replaced SDLT in Wales on 1 April 2018, making Wales the first part of the UK to have a Welsh-designed and Welsh-collected tax since the Laws in Wales Acts of 1535-1542.

LTT is a devolved Welsh tax, administered and collected by the Welsh Revenue Authority (WRA). The rates and bands are set by Welsh Ministers and approved by the Senedd (Welsh Parliament). They are different from SDLT rates in England and Northern Ireland, and from Land and Buildings Transaction Tax (LBTT) in Scotland.

This guide explains how LTT works, what the current rates are, and how it compares with SDLT.

Current LTT rates

LTT is a progressive (slice) tax. You pay the rate shown only on the portion of the price that falls within each band, not on the whole price. This is the same structure as SDLT and income tax.

Higher rates for additional properties

If you are buying an additional residential property in Wales (such as a second home, buy-to-let investment, or company purchase of a dwelling), higher LTT rates apply. These rates were increased by 1 percentage point across all bands from 11 December 2024.

The higher rates use a separate band structure, not a flat surcharge added to the main rates. This is a structural difference from England, where SDLT applies a flat 5% surcharge on top of the main rates for additional properties (increased from 3% from October 2024).

Non-residential purchases

If your business is buying commercial property, mixed-use property, or land in Wales, the non-residential LTT rates apply. These are lower than residential rates and have a nil-rate band up to £225,000, meaning many smaller commercial property purchases attract no LTT at all.

How LTT compares with SDLT
Replaced SDLT 1 April 2018 N/A (SDLT continues)
Administrator Welsh Revenue Authority (WRA) HMRC
Residential nil-rate band £225,000 £125,000 (from April 2025)
Top residential rate 12% (over £1.5m) 12% (over £1.5m)
Additional property surcharge Separate higher rate bands (up to 17%) Flat 5% added to all main rates
Non-residential nil-rate band £225,000 £150,000
Filing deadline 30 days from effective date 14 days from effective date
Filing method WRA online service or paper form HMRC online service

Filing and payment

LTT returns must be filed with the Welsh Revenue Authority within 30 days of the effective date of the transaction (usually the completion date). This is a longer filing window than SDLT, which requires filing within 14 days.

In practice, your solicitor or conveyancer will file the LTT return and arrange payment as part of the conveyancing process. The WRA provides an online filing service. Paper returns are also accepted but take longer to process.

Around 60% of residential transactions in Wales fall below the LTT nil-rate threshold, meaning no tax is payable. Even so, a return must still be filed for notifiable transactions.

Reliefs and exemptions

Several reliefs are available under LTT, broadly mirroring those under SDLT:

  • First-time buyer relief: Not available under LTT (unlike SDLT, which offers a nil-rate band up to £300,000). However, the higher LTT nil-rate band of £225,000 partially compensates
  • Group relief: Available for transfers between companies in the same group
  • Charity relief: Available for purchases by charities for charitable purposes
  • Multiple dwellings relief: Available when purchasing two or more dwellings in a single transaction
  • Higher rate refund: If you sell your previous main residence within 3 years of buying a replacement, you can claim a refund of the higher rate element

What this means for your business

If your business is buying or leasing property in Wales:

  • Check the location carefully. The location of the property determines whether LTT or SDLT applies. If a property straddles the Wales-England border, specific rules determine which tax applies
  • Use the WRA calculator. The WRA provides an online calculator to estimate your LTT liability before you commit
  • Budget for higher rates on additional properties. If your company already owns residential property, the higher rates will apply to new residential purchases
  • Allow time for filing. The 30-day filing deadline is more generous than SDLT's 14 days, but ensure your solicitor files on time to avoid penalties

Official guidance