What LTT is
LTT is a tax on buying land and property in Wales. It replaced Stamp Duty Land Tax for Welsh property on 1 April 2018 and is collected by the Welsh Revenue Authority (WRA). It applies to cash and mortgage purchases alike, and to new and older homes.
You pay it on the price, which the law calls the chargeable consideration. If no money changes hands, for example a gift with no mortgage taken on, there is usually nothing to pay. Residential property has its own rates. Shops, offices, farmland and mixed-use property use the non-residential rates.
Main residential rates
The main rates apply when you buy your only home, or replace your main home and sell the old one first. LTT is a slice tax: each rate applies only to the part of the price inside its band.
| Part of the price | Rate |
|---|---|
| Up to £225,000 | 0% |
| £225,001 to £400,000 | 6% |
| £400,001 to £750,000 | 7.5% |
| £750,001 to £1,500,000 | 10% |
| Above £1,500,000 | 12% |
The £225,000 starting threshold has applied since October 2022. It is the highest 0% band in the UK for a home mover, which means most homes in Wales pay little or no LTT.
A worked example
- First £225,000 at 0%£0
- Next £55,000 at 6%£225,001 to £280,000£3,300
That is 1.18% of the price. At £400,000 the bill is £10,500 (6% of £175,000). Above £400,000 each extra pound is taxed at 7.5%, so a home at £500,000 pays £18,000.
First-time buyers in Wales
There is no separate first-time buyer relief in Wales. Instead, every buyer of an only or main home gets the £225,000 0% band. For most first-time buyers in Wales that is more generous than relief elsewhere:
| Price | Wales | Scotland | England & NI |
|---|---|---|---|
| £200,000 | £0 | £500 | £0 |
| £250,000 | £1,500 | £1,500 | £0 |
| £300,000 | £4,500 | £4,000 | £0 |
| £400,000 | £10,500 | £12,750 | £5,000 |
| £500,000 | £18,000 | £22,750 | £10,000 |
England's first-time buyer relief, with 0% up to £300,000, beats Wales above £225,000, but it stops entirely above £500,000. In Wales the same rates apply whatever the price, so there is no cliff edge.
Higher residential rates
If you will own more than one home after buying, you usually pay the higher residential rates. Since 11 December 2024 they are:
| Part of the price | Rate |
|---|---|
| Up to £180,000 | 5% |
| £180,001 to £250,000 | 8.5% |
| £250,001 to £400,000 | 10% |
| £400,001 to £750,000 | 12.5% |
| £750,001 to £1,500,000 | 15% |
| Above £1,500,000 | 17% |
There is no 0% band, so tax is due from the first pound. The higher rates do not apply to a home bought for less than £40,000.
- First £180,000 at 5%£9,000
- Next £70,000 at 8.5%£5,950
- Last £50,000 at 10%£5,000
That compares with £4,500 for someone buying the same home as their only home: the higher rates add £15,450.
Who pays the higher rates
You usually pay the higher rates if, at the end of the day of purchase:
- you own two or more homes worth £40,000 or more, anywhere in the world; and
- the home you are buying is not replacing your main home.
Married couples and civil partners are treated as one: if your spouse owns a home, so do you for LTT. Buying jointly with someone who already owns a home they are keeping also triggers the higher rates for the whole purchase. Companies pay the higher rates on most residential purchases.
Buying before you sell
If you buy your next home before your old one sells, you will own two homes on the day, so the higher rates apply. You can claim them back once you sell, as explained below.
Getting the higher rates back
If the new home replaces your main home and you sell the old one within 3 years, you can claim back the difference between the higher rates and the main rates.
- Day 1Buy your new home
Pay LTT at the higher rates.
- Within 3 yearsSell your old main home
It must have been your main home in the 3 years before the purchase.
- After the saleClaim from the WRA
Apply online, usually within 12 months of the sale. The refund is the extra tax, not the whole bill.
On a £300,000 home the refund would be £15,450, leaving the £4,500 at the main rates. The calculator shows the refundable amount when you turn on "This replaces your main home".
LTT at common prices
| Price | Main rates | Higher rates | Difference |
|---|---|---|---|
| £150,000 | £0 | £7,500 | £7,500 |
| £200,000 | £0 | £10,700 | £10,700 |
| £250,000 | £1,500 | £14,950 | £13,450 |
| £300,000 | £4,500 | £19,950 | £15,450 |
| £350,000 | £7,500 | £24,950 | £17,450 |
| £400,000 | £10,500 | £29,950 | £19,450 |
| £500,000 | £18,000 | £42,450 | £24,450 |
| £750,000 | £36,750 | £73,700 | £36,950 |
| £1,000,000 | £61,750 | £111,200 | £49,450 |
Wales, England and Scotland compared
For a home mover, Wales is the cheapest of the three nations up to about £350,000, thanks to the £225,000 0% band. Above that England is cheaper, because its 5% band runs all the way to £925,000.
| Price | Wales (LTT) | Scotland (LBTT) | England & NI (SDLT) |
|---|---|---|---|
| £200,000 | £0 | £1,100 | £1,500 |
| £250,000 | £1,500 | £2,100 | £2,500 |
| £300,000 | £4,500 | £4,600 | £5,000 |
| £400,000 | £10,500 | £13,350 | £10,000 |
| £500,000 | £18,000 | £23,350 | £15,000 |
| £750,000 | £36,750 | £48,350 | £27,500 |
Filing and paying
Your solicitor or conveyancer files the LTT return with the WRA and pays the tax within 30 days of completion. In practice they collect the money from you before completion and pay on the day, because the purchase cannot be registered with HM Land Registry without the WRA's certificate.
A return is needed for most purchases of £40,000 or more, even when no tax is due. Late returns and payments attract penalties and interest.
Budget for LTT in cash
LTT cannot usually be added to the mortgage. Have it ready on completion day along with your deposit, legal fees and survey costs.
Paying no more than you owe
- Furniture and fittings. Movable items such as curtains, furniture and free-standing appliances are not taxed. If they are included in the price, they can be listed at a fair value. Inflating them is evasion.
- Thresholds. There are no cliff edges, but just above £225,000 every extra pound costs 6p in tax, and above £400,000 it costs 7.5p.
- Sell first if you can. Selling your old home before you complete avoids paying the higher rates and waiting for a refund.
- Diarise the refund. If you do buy first, note the 3-year deadline to sell and the time limit to claim.
Special cases
Shared ownership and shared equity. Special rules let you pay LTT on the share you buy or on the full value. Your conveyancer will advise which suits you.
New-build incentives. If the developer pays your LTT, it is still worked out on the price you pay.
Several dwellings at once. Buying more than one dwelling in one transaction has its own rules. Get specialist advice.
Leasehold homes. Most leasehold flats are bought for a premium with a low ground rent, and LTT is worked out on the premium. Leases with a significant rent can also be taxed on the rent.
How LTT has changed
- April 2018LTT replaces Stamp Duty in Wales
Run by the new Welsh Revenue Authority, with a £180,000 0% band.
- July 2020Temporary threshold rise
The 0% band rose to £250,000 until June 2021.
- October 20220% band rises to £225,000
The current main residential threshold.
- December 2022Higher rates rise by 1 point
- December 2024Higher rates rise again
To the current 5% to 17% rates.
Effective rates
The effective rate is the total LTT as a share of the price. At the main rates it stays low for most homes:
| Price | Main rates | Effective | Higher rates | Effective |
|---|---|---|---|---|
| £250,000 | £1,500 | 0.60% | £14,950 | 5.98% |
| £300,000 | £4,500 | 1.50% | £19,950 | 6.65% |
| £400,000 | £10,500 | 2.63% | £29,950 | 7.49% |
| £500,000 | £18,000 | 3.60% | £42,450 | 8.49% |
| £750,000 | £36,750 | 4.90% | £73,700 | 9.83% |
| £1,000,000 | £61,750 | 6.18% | £111,200 | 11.12% |
The gap between the two columns is what the higher rates cost. For a second home or buy-to-let it is usually the largest single cost of buying after the deposit.
Second homes and holiday lets in Wales
Wales has introduced several measures aimed at second homes and holiday lets, alongside the higher LTT rates:
- Council tax premiums. Councils can charge a premium of up to 300% on second homes and long-term empty homes, on top of the normal council tax.
- Holiday let business rates. To be rated for business rates rather than council tax, a self-catering property must be available to let for at least 252 days a year and actually let for at least 182 days.
- Planning controls. Some councils can require planning permission to change a main home into a second home or holiday let.
If you are buying in Wales for occasional use, check the council tax premium in that area before you commit: it can add thousands of pounds a year to the running cost.
The full cost of buying in Wales
Alongside LTT, budget for:
- Conveyancing fees and searches, usually £1,200 to £2,000.
- HM Land Registry fee to register the purchase, which rises with the price.
- Survey, from a few hundred pounds for a basic report.
- Mortgage fees, such as an arrangement fee.
- Removals, furnishing and buildings insurance from exchange of contracts.
Our moving house budget calculator adds these to your deposit and LTT so you can see the total cash you need on completion day.
Example: buying before you sell
Sian and Rhys own a home in Swansea and find their next home for £350,000 before their old one has sold. On completion day they own two homes, so the higher rates apply.
- LTT at the higher ratesPaid on completion£24,950
- LTT at the main ratesWhat they would have paid if they had sold first£7,500
Their old home sells 8 months later, so they claim the £17,450 back from the WRA. In the meantime they needed the full £24,950 in cash, so many buyers in this position use savings or a short-term loan, or wait to buy until their sale is agreed. If the old home had not sold within 3 years, the refund would have been lost.