Land Transaction Tax
The Welsh Government have announced changes to the residential rates and bands of Land Transaction Tax.
Discover all you need to know about Land Transaction Tax and how much you may need to pay when purchasing your new home by using our Land Transaction Tax payment calculator.
What is Land Transaction Tax?
Land Transaction Tax, often referred to as LTT is the tax paid on property purchases in Wales. It's the Welsh equivalent of the stamp duty that people pay in England, or Land and Buildings Transaction Tax (LBTT) in Scotland.
LTT is one of the tax liabilities that has been devolved from the Westminster government, and it replaced stamp duty land tax in Wales in 2018.
How much will I have to pay?
If the property you are purchasing is your main residence and is below £225,000 you won’t need to pay any Land Transaction Tax. However, if it is over this, there are several rate bands. The tax is calculated on the part of the property purchase price falling within each band.
Land Transaction Tax on second or buy-to-let homes
If you already have a residential property, and are looking to purchase an additional property such as second home or a buy-to-let property, you will be charged an extra 4% in Land Transaction Tax on top of the current rates for each band, but properties costing £40,000 or less are exempt.