Land Transaction Tax in Wales Explained

Land Transaction Tax (LTT) was introduced by the Welsh government in April 2018. Like the Stamp Duty it replaced, LTT is a tax, which must be paid when you buy property costing more than a certain threshold. How much you pay depends on the selling price of the home with additional rates for second properties. 

If you’re new to buying property or land in Wales, we explain more about LTT, answer some frequently asked questions and give you an idea of how much you might pay, depending on your circumstances. Read on for our land transaction tax calculator and more. 

Mansion TAX mentioned in the BUDGET – It does not currently affect properties in Wales

The new “mansion tax” (officially the High Value Council Tax Surcharge), announced in the UK’s Autumn 2025 Budget and effective from April 2028, does not automatically apply in Wales or Scotland. Property taxes are a devolved matter, meaning each nation’s government decides its own system.

• Wales: The new surcharge will apply in England only. The Welsh Government has its own council tax system based on 2003 property values and is currently consulting on its own reforms.
• Scotland: The tax does not automatically apply in Scotland. The Scottish Government has the power to introduce its own version of a high-value property tax, and a decision may be announced in its own budget in January 2026. Scotland currently uses a different property transaction tax called the Land and Buildings Transaction Tax (LBTT) and a separate council tax system.

Therefore, any equivalent measure in Wales or Scotland would require a separate decision and legislation by their respective governments.

What is Land Transaction Tax (LTT)? 

Land Transaction Tax or LTT is a tax paid by people buying residential property in Wales. It was introduced in April 2018 in place of Stamp Duty Land Tax and is collected by the Welsh Revenue Authority on behalf of the Welsh government. Like Stamp Duty Land Tax in England, it applies whether your home is leasehold or freehold and whether you’re buying with a mortgage or purchasing outright.  

You’ll pay LTT on your first home if it costs £225,000 or more. Equally, you’ll pay LTT if you’re buying a second home or buy-to-let that costs £40,000 and over 

What are the LTT rates? 

How much LTT you pay depends on which band the house price of your property falls into. If this is your first property or main residence, you’ll pay nothing on homes costing less than £225,000 – or the first £225,000 of your purchase. 

You’ll pay 6% on the portion between £225,000 and £400,000, 7.5% on the portion between £400,000 and £750,000, 10% on the portion up to £1.5 million and 12% on purchases costing more than that. 

The table below shows the Land Transaction Tax rates and property bands if you own a single property. 

LTT rates for single properties 

How much LTT will I pay on my property? 

If you have a particular property in mind on our website, you can work out exactly how much LTT you are likely to pay using our LTT calculator. 

Have a go below:

As an example, say you are looking to buy a first property in Ynys Mon costing £650,000. 

• You’d pay nothing on the first £225,000. 
• You’d pay the tax at 6% on the portion of the cost from £225,000 to 400,000 = 6% of 175,000 = £10,500. 
• Plus, you’d pay 7.5% on the portion from 400,000 to 650,000 so 7.5% of £250,000 = £18,750. 
• So, your tax bill would equal £29,250. 

LTT for first-time buyers 

Unlike in England and Northern Ireland where first-time buyers’ relief is available on Stamp Duty Land Tax, there are no LTT reliefs, exemptions or special rules for first time buyers in Wales, whether you are buying your own home or a buy-to-let. However, most first-time buyer properties in Wales fall within, or close to, the zero-banded threshold of £225,000. 

LTT for buy-to-lets and second homes 

As with other parts of the UK, people buying second homes need to pay an additional LTT charge. The higher rate of LTT applies when you buy property or land in Wales costing more than £40,000. The charge applies to any second homes whether holiday properties or buy-to-lets, or residential properties held in a trust whether you have an interest or it’s held on behalf of your children.  

However, you may be able to apply for a refund on the higher rates if the property is your new main residence, and you sell your last main residence 3 years or less after the purchase.  

Regardless of other properties owned, companies have to pay higher rates of LTT on any property purchase over £40,000, except those with a short lease of 21 years or less. You may also pay a higher rate on equity transfers. 

These are the LTT rates and bands for second home buyers in Wales. 

LTT rates for second properties 

What are the LTT rates for non-resident buyers? 

Land Transaction Tax rates are the same for overseas buyers. While in England and Northern Ireland non-resident buyers pay higher rates of Stamp Duty Land Tax, in Wales this isn’t the case. 

LTT exemptions 

The main LTT exemptions are for single properties costing less than £225,000 or second properties costing less than £40,000. There are no exemptions for first-time buyers. In addition, there are some cases where LTT reliefs can apply. Talk to your conveyancer if you think your purchase falls into one of these areas. 

• buying more than one property 
• moving property around a group structure 
• charities buying property 

For a full list of reliefs and exemptions visit the Welsh government website. 

How do I pay LTT in Wales? 

Your LTT will need to be paid to the Welsh Revenue Authority within 30 days of your completion date. To pay the tax you will need to submit a return on completion – usually this will be handled by your conveyancer.  

Even if your property is exempt from the tax, because it costs less than £225,000, you will still need to submit a return, though you won’t have any LTT to pay. If you don’t submit a return or pay on time you may be charged interest and penalties. 

Any exemptions from filing a Land Transaction Tax (LTT) return? 

Buyers may not need to file a Land Transaction Tax return and pay the tax if you qualify for one of the exemptions. The most common situations exemptions from the tax return for LTT are where the property or land’s price is under £40,000, if the ownership was transferred as part of a divorce or separation, or if you inherited the property in a will.  

Leaseholders may also be exempt in limited circumstances. You won’t have to file a tax return for new leases or assigned leases under 7 years where the cost is under the zero rate threshold, or for new or assigned leases for 7 years or more with annual rent under £1,000 or a premium under £40,000. 

What happens if I pay my LTT return late? 

Don’t risk paying your Land Transaction Tax return late as you will be charged daily interest and further penalties, which increase as time goes on. These include: 

• A late return penalty of £100 after the 30-day deadline has passed 
• A penalty of £300 or 5% of the total tax owed, whichever is greater, after 6 months 
• An additional penalty of £300 or 5% of the unpaid tax amount, whichever is greater, after 12 months 

However, this is just the basic structure. There is also provision for the various causes behind a late LTT payment, such as if you’ve provided inaccurate information. You can find full details on the penalty structure and appeals process on gov.wales – and professional advice can be invaluable. 

Understand Land Transaction Tax in Wales?

If you’re looking to buy or sell property in north Wales, talk to us. We’d love to show you our selection of properties in in Llangefni, Bangor, Caergybi, Gwynedd a Ynys Mon or give you a no-obligation market appraisal of your current home.