My Conveyancing Specialist · Current Land Transaction Tax rates and bands in Wales · Reviewed by Richard David · Last reviewed August 2026
In Wales you pay Land Transaction Tax (LTT), not Stamp Duty — and there’s no tax on the first £225,000. Above that, the main residential rates run at 6%, 7.5%, 10% and 12%, while second homes and buy-to-lets pay higher rates on a separate scale. LTT is set by the Welsh Government and collected by the Welsh Revenue Authority. Here are the current rates and bands, how the tax is calculated, and what you’ll actually pay.
| In short
● No LTT on the first £225,000 — the highest tax-free threshold in the UK. ● Main residential rates: 6% to £400,000, 7.5% to £750,000, 10% to £1.5m, then 12%. ● Higher rates (second homes, buy-to-let) run on a separate scale from 5% to 17%. ● Each rate applies only to the portion of the price within that band — not the whole price. ● Your solicitor files the LTT return and pays the Welsh Revenue Authority within 30 days. |
What is Land Transaction Tax?
Land Transaction Tax is the tax you pay when you buy property or land in Wales. It replaced Stamp Duty Land Tax in Wales on 1 April 2018 and is run by the Welsh Revenue Authority (WRA), with rates set by the Welsh Government — so the figures differ from Stamp Duty in England and Northern Ireland, and from the Land and Buildings Transaction Tax in Scotland.
How Land Transaction Tax is calculated
LTT is banded and progressive. Each rate applies only to the portion of the purchase price that falls within its band, not to the whole price — the same way income tax works. So on a home just above the threshold, only the slice above £225,000 is taxed, which keeps the bill low near the entry point and steeper on higher-value property.
Main residential LTT rates (2026/27)
These main rates apply when you’re buying a single home to live in and won’t own another property at the end of the transaction. They’ve been in place since October 2022:
| Portion of the purchase price | LTT rate |
| Up to £225,000 | 0% |
| £225,001 to £400,000 | 6% |
| £400,001 to £750,000 | 7.5% |
| £750,001 to £1,500,000 | 10% |
| Above £1,500,000 | 12% |
Because the first £225,000 is tax-free — well above England’s £125,000 — many Welsh buyers pay no Land Transaction Tax at all.
Higher residential rates: second homes and buy-to-let
If you (or any joint buyer) already own another dwelling worth £40,000 or more anywhere in the world at the effective date, you usually pay the higher residential rates — this covers second homes, buy-to-lets and holiday homes, and applies to companies buying residential property too.
Since 11 December 2024, Wales uses a completely separate band table for these — not a surcharge added to the standard rates — and there’s no nil-rate band, so tax is charged from the first pound:
| Portion of the purchase price | Higher rate |
| Up to £180,000 | 5% |
| £180,001 to £250,000 | 8.5% |
| £250,001 to £400,000 | 10% |
| £400,001 to £750,000 | 12.5% |
| £750,001 to £1,500,000 | 15% |
| Above £1,500,000 | 17% |
If you’re replacing your main residence but buy before you’ve sold, you may pay the higher rates and then reclaim the higher-rate element, provided you sell your previous home within 36 months.
Non-residential LTT rates
Non-residential and mixed-use purchases — commercial premises, agricultural land, or part-home-part-business property — have their own separate, lower band structure, and a leasehold property can add a further calculation based on the annual rent as well as the price. If you’re buying anything other than a straightforward home, your conveyancer will confirm the exact non-residential rates that apply.
First-time buyers
Wales has no first-time buyer relief — first-time buyers pay the same main rates as everyone else. In practice, though, the £225,000 threshold means most pay nothing. We explain this in full in our guide to Land Transaction Tax for first-time buyers in Wales.
How much LTT will you pay? Worked examples
Applying the main residential rates to the portion in each band gives the total LTT:
- £200,000 — £0 (below the threshold).
- £250,000 — £1,500 (6% on £25,000).
- £320,000 — £5,700 (6% on £95,000).
- £400,000 — £10,500 (6% on £175,000).
- £500,000 — £18,000 (6% on £175,000 + 7.5% on £100,000).
For a second home at £260,000, the higher rates give a very different result: £9,000 (5% on £180,000) + £5,950 (8.5% on £70,000) + £1,000 (10% on £10,000) = £15,950. That’s the gap the higher rates make.
Who pays LTT, and when?
The buyer pays LTT on most purchases of property or land in Wales above the threshold. You don’t file it yourself: your conveyancer calculates the tax, submits the LTT return to the Welsh Revenue Authority — online or by paper return — and pays it from your completion funds, all within 30 days of the effective date (usually completion). Late filing or payment attracts interest and penalties.
LTT exemptions and reliefs
Some transactions are exempt or attract relief — for example certain transfers between spouses or civil partners, property passing on divorce, or gifts where no money changes hands. There’s no relief simply for first-time buyers, and there’s no legitimate way to “avoid” LTT on a normal purchase — Wales operates a general anti-avoidance rule against artificial arrangements. The genuine way to pay less is straightforward: buy at or below £225,000 and there’s no LTT to pay.
Related: Conveyancing solicitors in Cardiff · Do you pay Stamp Duty in Wales?
Are LTT rates changing in 2026?
The main residential rates have applied since October 2022 and, as at August 2026, no change has been announced. The higher residential rates were last updated on 11 December 2024. Because LTT is set independently by the Welsh Government, changes to Stamp Duty in England don’t automatically apply in Wales — so always check the current position before you buy.
Frequently asked questions
What are the Land Transaction Tax rates in Wales?
For a single main home: 0% up to £225,000, then 6% to £400,000, 7.5% to £750,000, 10% to £1.5 million and 12% above. Second homes and buy-to-lets use separate higher rates from 5% to 17%.
How is Land Transaction Tax calculated?
It’s banded — each rate applies only to the portion of the price within that band. So on a £250,000 home you pay nothing on the first £225,000 and 6% on the remaining £25,000, giving £1,500.
How much LTT will I pay?
It depends on the price and whether it’s an additional property. As a guide, a £250,000 main home is £1,500 and a £400,000 main home is £10,500; a second home is taxed at the higher rates from the first pound.
Are there any LTT exemptions in Wales?
Yes — certain transfers (for example between spouses or civil partners, or on divorce) can be exempt, and purchases at or below £225,000 attract no LTT. Your conveyancer confirms whether an exemption applies.
Are Land Transaction Tax rates changing?
The main rates are unchanged since October 2022; the higher rates were last changed on 11 December 2024. Any future change is set by the Welsh Government.
This article is general information about the position in Wales as at August 2026 and is not legal or tax advice. Land Transaction Tax rates and rules are set by the Welsh Government and change — your conveyancer or a qualified tax adviser can confirm what applies to your purchase.
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