Land Transaction Tax (LTT), Wales
LTT is the Welsh equivalent of Stamp Duty, and is the tax charged by the Government in Wales when you buy a home.
What is LTT?
Land Transaction Tax (LTT) is the tax charged by the Government in Wales when you buy a home of more than £180,000.
Why do we have to pay it?
When you buy a property the change in land ownership has to be legally registered at the Land Registry. The Welsh Revenue Authority (WRA) are responsible for collecting Land Transaction Tax and will issue a certificate on receipt of the LTT payment due on the purchase of the property.
The transfer of funds to pay the LTT will be managed for you by your solicitor.
How much is LTT?
For homes over £180,000 there is no LTT to pay on the first £180,000, then the following rates apply:
|
Purchase price |
LTT rate |
|
£0 to £180,000 |
0% |
|
£180,001 to £250,000 |
3.5% |
|
£250,001 to £400,000 |
5% |
|
£400,001 to £750,000 |
7.5% |
|
£750,001 to £1,500,000 |
10% |
|
Over £1,500,000 |
12% |
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.
