What are Welsh Land Transaction Tax (LTT) Rates? How do you calculate Welsh Land Transaction Tax?
This is a freeview 'At a glance' guide to Land Transaction Tax rates.
Subscribers see Welsh Land Transaction Tax
The English version is called Stamp Duty Land Tax (SDLT).
The Scottish version is called Land and Buildings Transaction Tax (LBTT).
At a glance
Wales introduced the Land Transaction Tax (LTT), its own version of Stamp Duty Land Tax (SDLT), effective from 1 April 2018. It is paid by the purchaser of a leasehold or freehold interest in Welsh land and buildings. It is administered by the Welsh Revenue Authority (WRA).
HMRC will not accept SDLT returns for transactions subject to LTT.
Key features:
- LTT is similar in implementation to SDLT.
- It is based on a banding or marginal rate system (as currently in place for SDLT) for both residential and non-residential properties.
- There is no higher 15% rate on the purchase of residential property over £500,000 by a 'non-natural person', such as a company, as this is not seen as relevant for LTT.
- For additional residential properties, higher rates of LTT are due.
- These rates are set at 5% (4% between 22 December 2020 and 10 December 2024, 3% prior to 22 December 2020) on top of the LTT rates prior to 10 October 2022.
- The increased rates and bands from 10 October 2022 do not change the higher rates of LTT due on additional residential properties.
- Agents should register with the WRA 14 days in advance of any transaction.
- Between 27 July 2020 and 30 June 2021 the basic LTT nil rate band was extended due to Coronavirus.
- Rates for the higher rate residential and non-residential LTT remained unchanged.
LTT rates
Residential property rates
From 10 October 2022
|
Band |
Rate |
|
£0- £225,000 |
0% |
|
£225,000- £400,000 |
6% |
|
£400,000- £750,000 |
7.5% |
|
£750,000- £1.5 million |
10% |
|
£1.5 million and over |
12% |
From 1 July 2021 to 9 October 2022
|
Band |
Rate |
|
£0- £180,000 |
0% |
|
£180,000- £250,000 |
3.5% |
|
£250,000- £400,000 |
5% |
|
£400,000- £750,000 |
7.5% |
|
£750,000- £1.5 million |
10% |
|
£1.5 million and over |
12% |
From 27 July 2020 to 30 June 2021
|
Band |
Rate |
|
£0- £250,000 |
0% |
|
£250,000- £400,000 |
5% |
|
£400,000- £750,000 |
7.5% |
|
£750,000- £1.5 million |
10% |
|
£1.5 million and over |
12% |
From 1 April 2018 to 26 July 2020
|
Band |
Rate |
|
£0- £180,000 |
0% |
|
£180,000- £250,000 |
3.5% |
|
£250,000- £400,000 |
5% |
|
£400,000- £750,000 |
7.5% |
|
£750,000- £1.5 million |
10% |
|
£1.5 million and over |
12% |
Higher residential tax rates
From 11 December 2024
|
Band |
Rate |
|
£0- £180,000 |
5% |
|
£180,000- £250,000 |
8.5% |
|
£250,000- £400,000 |
10% |
|
£400,000- £750,000 |
12.5% |
|
£750,000- £1.5 million |
15% |
|
£1.5 million and over |
17% |
From 22 December 2020 to 10 December 2024
|
Band |
Rate |
|
£0- £180,000 |
4% |
|
£180,000- £250,000 |
7.5% |
|
£250,000- £400,000 |
9% |
|
£400,000- £750,000 |
11.5% |
|
£750,000- £1.5 million |
14% |
|
£1.5 million and over |
16% |
From 1 April 2018 to 21 December 2020
|
Band |
Rate |
|
£0- £180,000 |
3% |
|
£180,000- £250,000 |
6.5% |
|
£250,000- £400,000 |
8% |
|
£400,000- £750,000 |
10.5% |
|
£750,000- £1.5 million |
13% |
|
£1.5 million and over |
15% |
Non-residential property transactions
From 22 December 2020
|
Band |
Rate |
|
£0- £225,000 |
0% |
|
£225,000- £250,000 |
1% |
|
£250,000- £1 million |
5% |
|
£1 million and over |
6% |
From 1 April 2018 to 21 December 2020
|
Band |
Rate |
|
£0- £150,000 |
0% |
|
£150,000- £250,000 |
1% |
|
£250,000- £1 million |
5% |
|
£1 million and over |
6% |
Leases
From 22 December 2020
|
Net present value threshold |
Rate |
|
£0- £225,000 |
0% |
|
£225,000- £2 million |
1% |
|
£2 million and over |
2% |
From 1 April 2018 to 21 December 2020
|
Net present value threshold |
Rate |
|
£0- £150,000 |
0% |
|
£150,000- £2 million |
1% |
|
£2 million and over |
2% |
Small print and links
Small print and links
Welsh Land Transaction Tax
What is Land Transaction Tax? How does it operate? What reliefs are available?
SDLT: Stamp Duty Land Tax, start here
What is SDLT? What are the SDLT rates? What is exempt from SDLT? What reliefs are available? When are returns due? When can you amend a return?
External links
SDLT to Land Transaction Tax transitional guidance
Welsh Government website: Land Transaction Tax
The Land Transaction Tax (Administration) (Wales) Regulations 2018 (2018 No.2 (W.2))