In Wales you pay Land Transaction Tax (LTT) instead of Stamp Duty Land Tax when you buy a home. It’s run by the Welsh Revenue Authority, and it has its own bands and higher rates, with no first-time buyer relief. These are the 2026/27 rates. To work out the tax on a price, use the stamp duty calculator and choose Wales.
Main residential rates
These apply when you buy a home and won’t own any other residential property, and have applied since 10 October 2022.
| Part of the price you pay | Main LTT rate |
|---|---|
| The first £225,000 | 0% |
| Over £225,000, up to and including £400,000 | 6% |
| Over £400,000, up to and including £750,000 | 7.5% |
| Over £750,000, up to and including £1,500,000 | 10% |
| The rest, over £1,500,000 | 12% |
On a £300,000 home, the first £225,000 is tax-free and 6% is due on the remaining £75,000: £4,500.
First-time buyers
Wales has no first-time buyer relief. A first-time buyer pays the main rates, the same as anyone else buying their only home. With a main nil band of £225,000, a first-time buyer pays no LTT on a home up to that price; above it, they pay more than a first-time buyer in England would, where relief covers the first £300,000.
Higher rates for additional homes
In Wales, buying a home for £40,000 or more when you already own one or more other properties means the higher residential LTT rates apply, unless it replaces your main home; sell your previous main home within 3 years and you can usually claim a refund.- The home costs £40,000 or more.
- You already own one or more other residential properties (including through a trust, or on behalf of a child under 18).
- Married couples and civil partners are treated as buying together, even if only one of you is buying.
- If you sell your previous main home within 3 years of buying the new one, you can usually claim back the difference.
The higher rates, in force since 11 December 2024, are a separate set of bands, not a flat addition:
| Portion of the price | Higher LTT rate |
|---|---|
| Up to £180,000 | 5% |
| £180,001 to £250,000 | 8.5% |
| £250,001 to £400,000 | 10% |
| £400,001 to £750,000 | 12.5% |
| £750,001 to £1,500,000 | 15% |
| Over £1,500,000 | 17% |
On a £300,000 second home or buy-to-let, LTT at the higher rates is £19,950, against £4,500 at the main rates.
Companies pay the higher rates on any residential property of £40,000 or more (unless it comes with a lease of more than 21 years held by someone else), even if they own nothing else.
LTT and stamp duty compared
Wales charges less than England on homes costing under £350,000, thanks to its higher nil band, and more on homes above that price. The tax on a home bought by someone who isn’t a first-time buyer and won’t own another property:
| Home costing | LTT in Wales | SDLT in England or Northern Ireland |
|---|---|---|
| £225,000 | £0 | £2,000 |
| £275,000 | £3,000 | £3,750 |
| £450,000 | £14,250 | £12,500 |
| £750,000 | £36,750 | £27,500 |
Paying LTT
LTT goes to the Welsh Revenue Authority, not HMRC. The deadline is 30 days from the day after completion, and in practice your conveyancer deals with it.
Related guides
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