Land Transaction Tax (LTT) is the property purchase tax in Wales. It replaced Stamp Duty Land Tax in Wales on 1 April 2018 and is now administered by the Welsh Revenue Authority (WRA) — a separate tax body from HMRC. If you are buying property in Wales, you pay LTT, not SDLT.
LTT Rates and Bands 2026/27
Main Residential Rate (Primary Home Purchases)
| Property value band | LTT rate | Tax on that portion |
|---|---|---|
| Up to £225,000 | 0% | £0 |
| £225,001–£400,000 | 6% | Up to £10,500 |
| £400,001–£750,000 | 7.5% | Up to £26,250 |
| £750,001–£1,500,000 | 10% | Up to £75,000 |
| Over £1,500,000 | 12% | — |
LTT is applied in bands — like income tax. You pay the rate on the portion of the property price within each band, not on the full price.
LTT Worked Examples
Example 1: £180,000 house (typical Wales terrace)
- Up to £225,000 at 0%: £0
- Total LTT: £0
Example 2: £300,000 house (Cardiff suburbs)
- First £225,000 at 0%: £0
- £75,000 (£225,001–£300,000) at 6%: £4,500
- Total LTT: £4,500
Example 3: £500,000 house (Newport, coastal)
- First £225,000 at 0%: £0
- £175,000 (£225,001–£400,000) at 6%: £10,500
- £100,000 (£400,001–£500,000) at 7.5%: £7,500
- Total LTT: £18,000
Example 4: £750,000 house (rural estate, Cardiff Vale)
- First £225,000 at 0%: £0
- £175,000 at 6%: £10,500
- £350,000 at 7.5%: £26,250
- Total LTT: £36,750
Higher Residential Rate (Additional Dwellings)
If you already own a property and are buying another — a second home, buy-to-let, or holiday cottage — you pay the higher LTT rates.
| Property value band | Higher rate |
|---|---|
| Up to £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% |
Example: £220,000 buy-to-let in Cardiff
- First £180,000 at 4%: £7,200
- £40,000 at 7.5%: £3,000
- Total LTT: £10,200 (vs £0 for a main residence at this price)
LTT vs Stamp Duty — Key Differences From England
| LTT (Wales) | SDLT (England) | |
|---|---|---|
| Tax authority | Welsh Revenue Authority | HMRC |
| 0% threshold (main home) | £225,000 | £250,000 |
| First-time buyer relief | No separate relief | Additional 0% up to £425,000 |
| Second home surcharge | 4%+ | 3%+ |
| Administration | WRA online return | HMRC SDLT return |
Key implication: Buying a property in Wales at £250,000 — you pay 6% LTT on £25,000 = £1,500 in LTT. The equivalent English buyer pays £0 SDLT (under the £250,000 threshold). For properties under £225,000, Wales and England are equivalent (both zero). Above £225,000, Wales can be more expensive.
Non-Residential LTT
LTT also applies to non-residential and mixed-use properties (shops, offices, agricultural land):
| Band | Rate |
|---|---|
| Up to £225,000 | 0% |
| £225,001–£2,000,000 | 1% |
| Over £2,000,000 | 2% |
When You Don’t Pay LTT
LTT is not payable on:
- Gifts — property transferred as a gift (no consideration paid)
- Inheritance — property received via a will
- Divorce/separation transfers — property transferred between divorcing spouses
- Property bought under £225,000 as a main residence
- Charities — subject to conditions
How to Pay LTT
LTT must be paid within 30 days of the property transaction completing. Your solicitor or conveyancer normally handles this as part of the conveyancing process. If you use a solicitor, they will:
- Calculate the LTT owed
- Submit the LTT return to the Welsh Revenue Authority
- Pay the LTT on your behalf from completion funds
If you handle conveyancing yourself (rare), you must file directly with the WRA.
Budget for LTT — What to Include
When budgeting for a Welsh property purchase, include:
| Cost | Notes |
|---|---|
| LTT | Based on purchase price band (see tables above) |
| Solicitor fees | £1,000–£2,500 typically |
| Survey | £300–£1,500 depending on type |
| Mortgage arrangement fee | £0–£2,000 depending on product |
| Land Registry fee | £20–£910 depending on price |
| Moving costs | £500–£2,000+ |