What are Welsh Land Transaction Tax (LTT) Rates? How do you calculate 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).

 

LTT rates

Residential property rates

From 27 July 2020 – 31 March 2021

Band: market price

Tax Rate

£0- £250,000

0 %

£250,000- £400,000

5 %

£400,000- £750,000

7.5 %

£750,000- £1.5 million

10 %

£1.5million and over

12 %

 

From 1 April 2018 – 26 July 2020

Band: market price

Tax 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 %

£1.5million and over

12 %

 

Higher residential tax rates

From 22 December 2020

Band: market price

Tax 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 %

£1.5million and over

16 %

 

From 1 April 2018 - 21 December 2020

Band: market price

Tax 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 %

£1.5million and over

15 %

 

Non-residential property transactions

From 22 December 2020

Band: market price

Tax Rate

£0- £225,000

0 %

£225,000- £250,000

1 %

£250,000- £1 million

5 %

£1 million and over

6 %

 

From 1 April 2018 - 21 December 2020

Band: market price

Tax 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

Rates

£0- £225,000

0 %

£225,000- £2 million

1 %

£2 million and over

2 %

 

From 1 April 2018 - 21 December 2020

Net present value threshold

Rates

£0- £150,000

0 %

£150,000- £2 million

1 %

£2 million and over

2 %

 

LTT At a glance

Wales has 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 LTT features

  • LTT is similar in implementation as 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 will be 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, an additional 4% (3% prior to 22 December 2020) is payable on top of the main residential rate in each band.
  • Agents should register with the WRA 14 days in advance of any transaction.

Coronavirus: temporary increased nil rate band

  • Between 27 July 2020 to 31 March 2021 the basic LTT nil rate band has been extended due to the coronavirus.
  • Rates for the higher rate residential and non-residential LTT remain unchanged.

Registration

Agents need to register to file LTT returns online. They should need to allow up to two weeks to complete the registration process. 

Individuals who are not represented by a solicitor, agent or legal conveyancer, do not need to register to file a return.

There are three steps to registering your organisation in order to file LTT returns online:

  • Register your organisation with the Welsh Revenue Authority (WRA).
  • Sign up to WRA online services so that you can file your LTT returns online.
  • Notify WRA of any additional users you would like to add to your online account.

See How to register

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