Welsh Land Transaction Tax
If you’re buying a home in Wales for £225,000 or less, you won’t pay any Land Transaction Tax (LTT). This is great news for first‑time buyers and anyone purchasing at the lower end of the market.
LTT is the Welsh equivalent of Stamp Duty. It’s a tax you may need to pay when buying a property or land over a certain price. The system has been in place since April 2018, when it replaced Stamp Duty in Wales.
In October 2022, the Welsh Government increased the tax‑free threshold from £180,000 to £225,000 to reflect rising house prices. This means more buyers now pay no tax at all on their purchase.
For homes costing more than £345,000, there is a small increase in the tax rate. This only affects the portion of the price above each tax band.
How the Tax Works
LTT is charged in bands. You only pay the rate that applies to the portion of the price within each band — not the whole purchase price.
Different rates apply depending on the type of property (for example, main residence vs. second home).
Price threshold | Land Transaction Tax rate | |
The portion up to and including | £225,000 | 0% |
The portion over | £225,000 up to and including £400,000 | 6% |
The portion over | £400,000 up to and including £750,000 | 7.5% |
The portion over | £750,000 up to and including £1,500,000 | 10% |
The portion over | £1,500,000 | 12% |
What is Land Transaction Tax (LTT)?
LTT is the Welsh version of Stamp Duty.
You may pay it when you buy a home over certain price thresholds.
If your home costs £225,000 or less, you pay no LTT.
2. Leasehold Homes
If you’re buying a leasehold property:
You may pay LTT on the lease premium (the upfront price you pay for the lease).
You do not pay LTT on the rent charged under the lease.
3. Higher Rates (Second Homes & Buy‑to‑Let)
You may pay higher residential rates if:
You already own another property, and
You’re buying an additional home (e.g., second home, holiday home, buy‑to‑let).
But: If you’re replacing your main residence, the higher rates often don’t apply.
Companies always pay the higher rates.
Trusts may also pay them depending on how they’re set up.
How much higher?
The higher rates are 3% added on top of the standard residential rates.
4. Example: Buying a Second Home for £260,000
You pay tax in bands:
3% on the first £180,000
6.5% on the next £70,000
8% on the final £10,000
Total LTT: £10,750
5. Non‑Residential & Mixed‑Use Property
Different rates apply if you’re buying:
Shops
Offices
Agricultural land
Mixed‑use property (e.g., a flat above a shop bought together)
These use the non‑residential LTT rates.
6. Want to Check Your Exact Tax?
You can use the Welsh Revenue Authority’s online calculator to work out your LTT based on the purchase price.
For more information visit.
https://www.gov.wales/land-transaction-tax
To work out how much tax you will pay visit.