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
- Higher residential tax rates
- Non-residential property tax rates
- Non-residential property rent
Main residential tax rates
Transactions with an effective date from 27 July 2020 to 30 June 2021.
| Price threshold | LTT rate |
|---|---|
| The portion up to and including £250,000 | 0% |
| The portion over £250,000 up to and including £400,000 | 5% |
| The portion over £400,000 up to and including £750,000 | 7.5% |
| The portion over £750,000 up to and including £1,500,000 | 10% |
| The portion over £1,500,000 | 12% |
Example
If you buy a house for £300,000, you’ll pay:
| Rates and bands | Tax 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 threshold | LTT rate |
| The portion up to and including £180,000 | 0% |
| The portion over £180,000 up to and including £250,000 | 3.5% |
| The portion over £250,000 up to and including £400,000 | 5% |
| The portion over £400,000 up to and including £750,000 | 7.5% |
| The portion over £750,000 up to and including £1,500,000 | 10% |
| The portion over £1,500,000 | 12% |
Example
If you buy a house for £260,000, you’ll pay:
| Rates and bands | Tax 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 threshold | LTT rate |
| The portion up to and including £180,000 | 4% |
| The portion over £180,000 up to and including £250,000 | 7.5% |
| The portion over £250,000 up to and including £400,000 | 9% |
| The portion over £400,000 up to and including £750,000 | 11.5% |
| The portion over £750,000 up to and including £1,500,000 | 14% |
| The portion over £1,500,000 | 16% |
Example
If you buy a second home for £260,000, you’ll pay:
| Rates and bands | Tax 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 threshold | LTT rate |
| The portion up to and including £225,000 | 0% |
| The portion over £225,000 up to and including £250,000 | 1% |
| The portion over £250,000 up to and including £1,000,000 | 5% |
| The portion over £1,000,000 | 6% |
Non-residential property rent
Transactions with an effective date on or after 22 December 2020.
| NPV threshold | LTT rate |
| The portion up to and including £225,000 | 0% |
| The portion over £225,000 up to and including £2,000,000 | 1% |
| The portion over £2,000,000 | 2% |
