You must pay Land Transaction Tax (formerly known as Stamp Duty) if you buy a property or land over a certain price in Wales.

The current LTT threshold is £180,000 for residential properties and £150,000 for non-residential land and properties. There are different rules if you already own one or more residential properties and you may need to pay the higher residential rates. However, if you are replacing your main residence the higher rates may not apply.

You pay the tax when you:

  • buy a freehold property
  • buy a new or existing leasehold
  • are transferred land or property in exchange for payment, e.g. you take on a mortgage or buy a share in a house

Tax Rates and Bands

Please be advised that the information disclosed below has been collated from the Welsh Government Services and Information website.

For further information, please visit https://gov.wales/land-transaction-tax rates-and-bands

Contents

Main residential tax rates

Transactions with an effective date from 27 July 2020 to 30 June 2021.

Price thresholdLTT rate
The portion up to and including £250,0000%
The portion over £250,000 up to and including £400,0005%
The portion over £400,000 up to and including £750,0007.5%
The portion over £750,000 up to and including £1,500,00010%
The portion over £1,500,00012%

Example

If you buy a house for £300,000, you’ll pay:

Rates and bandsTax due
0% on the first £250,000£0
5% on the final £50,000£2,500
The total LTT will be£2,500

Transactions with an effective date between 1 April 2018 and 26 July 2020, and on or after 1 July 2021

Price thresholdLTT rate
The portion up to and including £180,0000%
The portion over £180,000 up to and including £250,0003.5%
The portion over £250,000 up to and including £400,0005%
The portion over £400,000 up to and including £750,0007.5%
The portion over £750,000 up to and including £1,500,00010%
The portion over £1,500,00012%

Example

If you buy a house for £260,000, you’ll pay:

Rates and bandsTax due
0% on the first £180,000£0
3.5% on the next £70,000£2,450
5% on the final £10,000£500
The total LTT will be£2,950

Higher residential tax rates

Transactions with an effective date on or after 22 December 2020.

Price thresholdLTT rate
The portion up to and including £180,0004%
The portion over £180,000 up to and including £250,0007.5%
The portion over £250,000 up to and including £400,0009%
The portion over £400,000 up to and including £750,00011.5%
The portion over £750,000 up to and including £1,500,00014%
The portion over £1,500,00016%

Example

If you buy a second home for £260,000, you’ll pay:

Rates and bandsTax due
4% on the first £180,000£7,200
7.5% on the next £70,000£5,250
9% on the final £10,000£900
The total LTT will be£13,350

Non-residential property tax rates

Transactions with an effective date on or after 22 December 2020.

Price thresholdLTT rate
The portion up to and including £225,0000%
The portion over £225,000 up to and including £250,0001%
The portion over £250,000 up to and including £1,000,0005%
The portion over £1,000,0006%

Non-residential property rent

Transactions with an effective date on or after 22 December 2020.

NPV thresholdLTT rate
The portion up to and including £225,0000%
The portion over £225,000 up to and including £2,000,0001%
The portion over £2,000,0002%