Land Transaction Tax (LTT), Wales
Land Transaction Tax (LTT) is a tax you may need to pay when buying a residential property or land in Wales. It applies to leaseholds and freeholds, whether purchased outright or with a mortgage.
Our handy guide can help you learn more about LTT, including how and when to pay and the LTT rates for first-time buyers and existing homeowners.
Why do I have to pay LTT?
If you’re ready to buy your new home or piece of land in Wales, the change of ownership needs to be registered with the Land Registry. The Welsh Revenue Authority (WRA) will collect the tax and issue a certificate on receipt of the payment.
LTT rates for first-time buyers
If your home costs up to £225,000, you’re exempt from LTT. If it costs more, the below rates apply:
| Purchase price | LTT rate |
| £0 to £225,000 |
0% |
| £225,001 to £400,000 |
6% |
| £400,001 to £750,000 |
7.5% |
| £750,001 to £1,500,000 |
10% |
| Over £1,500,000 |
12% |
Example
Your new home costs £300,000. Your LTT is:
• 0% on the first £225,000 = £0
• 6% on the remaining £75,000 = £4,500
• Total LTT = £4,500
LTT rates on second homes
Property investors and existing homeowners are exempt from LTT on the first £40,000. Then, the following rates apply:
| Purchase price | LTT rate |
| £40,000 to £180,000 |
4% |
| £180,001 to £250,000 |
7.5% |
| £250,001 to £400,000 |
9% |
| £400,001 to £750,000 |
11.5% |
| £750,001 to £1,500,000 |
14% |
| Over £1,500,000 |
16% |
Example
Your buy-to-let property or second home costs £240,000. Your LTT is calculated as follows:
• 0% on the first £40,000 = £0
• 7.5% on the remaining £200,000 = £15,000
• Total LTT = £15,000
LTT exemptions
You’re exempt from LTT if:
• The property is left in a will
• The property is transferred following a divorce
• The property is a freehold and worth less than £40,000
• The property is a leasehold and worth less than £40,000, the annual rent is less than £1,000, and the lease is seven years or more
When can I pay LTT?
First, you need to submit an LTT return. Once you do so, you pay the amount to the Welsh Revenue Authority (WRA) within 30 days from the day after completion.
WRA may charge you a penalty and interest if you fail to submit or you’re late.
How do I pay LTT?
Your solicitor will file the LTT return on your behalf. If you don’t use a solicitor, you can do it online or submit a paper return.
If your house costs less than £250,000, you still need to submit a return.
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LTT FAQs
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There is no specific first time buyers relief in Wales. However, in line with standard LTT rates, you do not pay tax on properties less than £225,000
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LTT is the Welsh equivalent of SDLT, but it has different tax bands and rates, as well as some different rules and exemptions. Find out more about Stamp Duty here.
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The process of calculating LTT in Wales involves determining the value of the property, checking the relevant LTT tax bands and rates, and applying any applicable reliefs or exemptions. The Welsh Revenue Authority provides an online LTT calculator to help determine the amount of LTT payable.
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