Cymraeg The Following is a summary of Land Transaction Tax (LTT) in Wales as of 2025:
What Is LTT?
Land Transaction Tax is a property tax payable when buying land or property in Wales. It replaced Stamp Duty Land Tax (SDLT) in April 2018 and is administered by the Welsh Revenue Authority.
How LTT Works
- Progressive tax bands: You pay different rates on portions of the purchase price.
- Applies to: Residential and non-residential transactions.
- Effective date: Usually the date of completion (when ownership transfers).
Residential Property Rates (Main Home)
| Price Band (£) | Tax Rate |
|---|---|
| Up to £225,000 | 0% |
| £225,001 – £400,000 | 6% |
| £400,001 – £750,000 | 7.5% |
| £750,001 – £1,500,000 | 10% |
| Over £1,500,000 | 12% |
Higher Rates (Second Homes or Buy-to-Let)
| Price Band (£) | Tax Rate |
|---|---|
| Up to £180,000 | 5% |
| £180,001 – £250,000 | 8.5% |
| £250,001 – £400,000 | 10% |
| £400,001 – £750,000 | 12.5% |
| £750,001 – £1,500,000 | 15% |
| Over £1,500,000 | 17% |
Deadlines & Exemptions
- Return & payment due: Within 30 days of completion.
- No return needed if:
-
- Property is inherited and no payment is made.
- Transferred due to divorce/separation.
- Purchase price is under £40,000.
Tools & Advice
Use the LTT calculator to estimate your tax.- Solicitors usually handle the submission, but you're legally responsible for ensuring it’s done.
Land Transaction Tax (LTT) exemptions in Wales as of 2025:
Situations Where No LTT Is Payable
These are the most common exemptions:
- Low-value transactions: If the purchase price is under £40,000, no LTT return or payment is required.
- Gifts with no consideration: If land or property is transferred without any payment or debt assumption, it's exempt.
- Divorce or dissolution settlements: Transfers between former partners under a court order or formal agreement are exempt.
- Inheritance: Property passed on through a will or intestacy is not subject to LTT.
- Transfers between companies and shareholders: In certain restructuring cases, relief may apply.
- Crown or public body transfers: Some transactions involving government bodies are exempt.
Notable Non-Exemptions
- First-time buyers: Unlike England, Wales does not offer LTT relief for first-time buyers.
- Second homes and buy-to-let: These attract higher rates, not exemptions.
- Multiple dwellings: May qualify for relief, but not full exemption—special calculations apply.
Reliefs vs Exemptions
- Exemptions mean no tax or return is required.
- Reliefs reduce the amount payable but still require filing a return.
You can explore reliefs and exemptions in more detail via the Welsh Revenue Authority calculator.
Would you like help checking if a specific transaction qualifies for exemption or relief?
The above information is to provided as a guide and should not be relied upon by buyers or sellers - please take advice before making any commitment to buy or sell.
