Your insider’s guide to Land Transaction Tax: Wales

What is the Land Transaction Tax, and when does it need to be paid?

When buying a property or land in Wales, your purchase will be subject to the Land Transaction Tax (LTT) that’s set out by the Welsh Government. Like in England, Northern Ireland and Scotland, this tax applies for property or land purchases over a certain price.

The current threshold for both residential and non-residential land and property for Land Transaction Tax in Wales is £225,000.

As properties and land increase in value, so does the price threshold and bands they fall within. The following table illustrates these bands set out by the Welsh Government for any transactions made on or after the 10th October 2022:
 

Price threshold for property & land	LTT rate
up to and including £225,000	0%
over £225,000 up to and including £400,000	6%
over £400,000 up to and including £750,000	7.5%
over £750,000 up to and including £1,500,000	10%
over £1,500,000	12%

Source: https://www.gov.wales/land-transaction-tax-rates-and-bands (03.2023)

For example, if you buy a property worth £280,000 in March 2023, the total Land Transaction Tax you pay is £3,300:
 

• 0% on the first £225,000, you pay £0
• 6% on the final £55,000, you pay £3,300
• The total LTT to pay is £3,300

You can find more information offered by the Welsh Government here.

Usually, your conveyancer completes an Land Transaction Tax return on your behalf so that you don’t need to worry about it. This must be submitted within 30 days of the effective date of the transaction. Contact your local branch to find out more. 

What variations in Land Transaction Tax exist?

Unlike England, Northern Ireland and Scotland, Wales offers no relief for first-time buyers; however, the Welsh Government offers variations on Land Transaction Tax when:
 

• buying multiple properties,
• charities are buying property,
• moving property around a group structure.

For a full list of Land Transaction Tax variations and reliefs, read up on the Welsh Government guides.

What variations in Land Transaction Tax exist?

Unlike England, Northern Ireland and Scotland, Wales offers no relief for first-time buyers; however, the Welsh Government offers variations on Land Transaction Tax when:

• buying multiple properties,
• charities are buying property,
• moving property around a group structure.

For a full list of Land Transaction Tax variations and reliefs, read up on the Welsh Government guides.

Also keep in mind that if you’re looking to buy in England or Northern Ireland, a different system applies. Read more about their Stamp Duty Land Tax here. For Scotland, you can find more information here.

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