Land Transaction Tax (LTT)
LTT is the property tax paid when buying a home in Wales. It's calculated using rate bands, so you only pay the rate on the portion of the price that falls within each band.
Who pays LTT?
The buyer pays LTT when the price is above the nil-rate threshold. Higher residential rates apply to additional properties.
Key thresholds (summary)
- Standard rates start above £225,000
- Higher residential rates use separate rate bands
- No first-time buyer relief in Wales
Current LTT rates (Wales)
Standard rates
| Purchase price | Rate |
|---|---|
| Up to £225,000 | 0% |
| £225,000 – £400,000 | 6% |
| £400,000 – £750,000 | 7.5% |
| £750,000 – £1,500,000 | 10% |
| Above £1,500,000 | 12% |
Higher residential rates (additional properties)
| Purchase price | Rate |
|---|---|
| Up to £180,000 | 5% |
| £180,000 – £250,000 | 8.5% |
| £250,000 – £400,000 | 10% |
| £400,000 – £750,000 | 12.5% |
| £750,000 – £1,500,000 | 15% |
| Above £1,500,000 | 17% |
Note: no first-time buyer relief in Wales.
What this calculator does not cover
This calculator focuses on residential purchases only and does not include mixed-use, leases, or complex reliefs.
Frequently asked questions
- What is Land Transaction Tax (LTT)?
- LTT is the property tax paid when buying residential or commercial property in Wales. It replaced Stamp Duty in Wales in 2018.
- Who pays LTT?
- The buyer pays LTT when the purchase price is above the nil-rate threshold. Higher residential rates apply to additional properties.
- What are higher residential rates?
- Higher residential rates apply when you already own a residential property and buy another in Wales. These rates are higher than the standard LTT rates.
- How does LTT differ from SDLT?
- LTT applies to property purchases in Wales, whereas SDLT applies in England and Northern Ireland. The tax bands, rates, and reliefs differ, and Wales does not offer first-time buyer relief.