If you’re buying a home in Wales that costs more than £225,000, or £40,000 as a second home, you’ll pay Land Transaction Tax (LTT). Here’s what you need to know.
Land Transaction Tax calculator
Our Land Transaction Tax calculator will quickly show you how much you'll pay.
If you want to find out how Land Transaction Tax is calculated, we explain how it works below.
What is Land Transaction Tax?
Land Transaction Tax (LTT) is a charge you’ll pay if you buy a property or piece of land in Wales that costs over £225,000, or over £40,000 if it’s a second home.
If you’re buying in other parts of the UK, see our other guides:
Stamp Duty in England and Northern Ireland
Land and Buildings Transaction Tax in Scotland
How much is Land Transaction Tax in Wales
Land Transaction Tax (LTT) is based on:
- the price of the property you’re buying, and
if you’ll own more than one property.
Our Land Transaction Tax calculator will work it out for you, or see the rates below. You’ll pay different rates if the price of your property spans more than one band.
For example, if your property costs £500,000, you’ll pay nothing on the first £225,000, 6% on the next £175,000 and 7.5% on the last £100,000.
| Property purchase price bands | Rate of tax you’ll pay |
|---|---|
|
Less than £225,000 |
0% |
|
£225,001 to £400,000 |
6% |
|
£400,001 to £750,000 |
7.5% |
|
£750,001 to £1,500,000 |
10% |
|
More than £1,500,000 |
12% |
| Property purchase price bands | Rate of tax you’ll pay |
|---|---|
|
Up 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% |
|
More than £1,500,000 |
16% |
How to pay Land Transaction Tax
You or your solicitor will need to submit a Land Transaction Tax return, even if you don’t need to pay anything.
Either way, you’re responsible for making sure it’s submitted on time.
How long do you have to pay Land Transaction Tax?
You have 30 days after buying your property to submit a Land Transaction Tax return and pay any tax due.
If you don’t submit a return and pay the tax, Welsh Revenue Authority might charge you penalties and interest.
When would you not need to submit a Land Transaction Tax return?
You don’t need to submit a return if the property:
is left to you in a will, and you don’t pay anything for it
is transferred to you following a divorce or separation
costs less than £40,000.
There are also some situations where a leasehold transfer costing less than £40,000 doesn’t need a tax return.
Learn more about when you don’t need to file a return on GOV.WalesOpens in a new window
