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What is Land Transaction Tax (LTT)?

Updated: Sep 28, 2023


What is Land Transaction Tax (LTT)?


Land Transaction Tax (LTT) is a government tax charged on properties in Wales. LTT replaced Stamp Duty Land Tax (SDLT) in Wales in 2018. The amount of tax you’ll pay depends on the purchase price of the property you’re buying.

It's important to be aware of all the associated costs, including conveyancing and land transaction tax, so you can be fully informed and confident when investing in a home.


Main Residential Tax Rates


When you buy a residential property (freehold or leasehold) the following rates will apply to the portion of the price you pay in each band.

Transactions with an effective date on or after 10 October 2022. Price threshold LTT rate:


The portion up to and including £225,000 0%

The portion over £225,000 up to and including £400,000 6%

The portion over £400,000 up to and including £750,000 7.5%

The portion over £750,000 up to and including £1,500,000 10%

The portion over £1,500,000 12%


Higher Rate Tax Rates


If you or your spouse or civil partner own another property or a share in another property, you may need to pay LLT at the higher rates as follows:

Transactions with an effective date on or after 22 December 2020:


The portion up to and including £180,000 - 4%

The portion over £180,000 up to and including £250,000 - 7.5%

The portion over £250,000 up to and including £400,000 - 9%

The portion over £400,000 up to and including £750,000 - 11.5%

The portion over £750,000 up to and including £1,500,000 - 14%

The portion over £1,500,000 - 16%


Further, higher rate of LLT will also apply to the following:

  • Companies that purchase residential properties.

  • Trusts that purchase residential properties.

No First-time Buyer Tax Relief


If you're a first-time homebuyer in Wales, you might be wondering if you need to pay the land transaction tax, which is a fee paid to the Welsh Revenue Authority when you purchase a property. Unfortunately, there are currently no exemptions for first-time buyers in Wales. However, there are other financial and legal options available to help you during the home buying process.


As a trusted law firm offering guidance on Land Transaction Tax (LTT), we invite you to take advantage of our expertise and experience in navigating this complex area of law. Contact us today to schedule a consultation and learn how we can assist you.


Looking for affordable and expert legal assistance?

Contact us at info@rjmsolicitors.co.uk today for a quick and easy consultation!



Disclaimer: The information on the RJM Solicitors website www.rjmsolicitors.co.uk is for general information only and reflects the position at the date of publication. It does not constitute legal advice and should not be treated as such. If you would like to ensure the commentary reflects current legislation, case law or best practice, please contact info@rjmsolicitors.co.uk.

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