LTT: Land Transaction Tax
Land Transaction Tax (LTT) is Wales's property transaction tax, replacing SDLT from 1 April 2018. Administered by the Welsh Revenue Authority, it has different rates, a higher nil-rate threshold, and no first-time buyer relief.
Last verified: April 2026 | Source: GOV.WALES
Key Takeaways
- •LTT applies in Wales only, from 1 April 2018. Administered by the Welsh Revenue Authority (WRA).
- •Nil-rate threshold: £225,000 — higher than SDLT's £125,000 but with no first-time buyer relief.
- •Filing deadline is 30 days from the effective date — twice as long as SDLT's 14 days.
- •A return must be filed even if no tax is due.
- •Higher residential rates apply if you already own other property.
In this article
Definition
Land Transaction Tax (LTT) is Wales's property transaction tax, established by the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017. It replaced Stamp Duty Land Tax (SDLT) in Wales from 1 April 2018.
The Welsh Revenue Authority (WRA) collects and administers LTT for the Welsh Government. LTT is a self-assessed tax — the taxpayer is responsible for filing an accurate return and paying the correct amount.
Who Has to Pay
You must pay LTT when buying property or land in Wales above the nil-rate threshold. This includes:
- •Freehold property purchases
- •New or existing leasehold purchases
- •Property transferred in exchange for payment
The current LTT nil-rate threshold is £225,000 for residential property (if you do not own other property) and £225,000 for non-residential land.
Residential Rates
| Property value | LTT rate |
|---|---|
| Up to £225,000 | 0% |
| £225,001 to £400,000 | 6% |
| £400,001 to £750,000 | 7.5% |
| £750,001 to £1.5 million | 10% |
| Above £1.5 million | 12% |
Source: gov.wales/land-transaction-tax-rates-and-bands
No First-Time Buyer Relief
Wales has no first-time buyer relief. The £225,000 nil-rate threshold applies equally to all buyers. This differs from SDLT in England, where first-time buyers get a nil-rate band of £300,000.
How to File and Pay
LTT returns must be filed with the WRA and any tax paid within 30 days of the day after completion (the effective date). This is longer than SDLT's 14-day deadline.
A return must be filed even if no LTT is due — with some limited exceptions. Solicitors and conveyancers usually file online on behalf of buyers.
When No Return Is Needed
You do not need to file an LTT return if:
- •Property is left to you in a will with no payment
- •Property transfers due to divorce or dissolution of a civil partnership
- •You buy a freehold for less than £40,000
LTT vs SDLT: Key Differences
| Feature | LTT (Wales) | SDLT (England) |
|---|---|---|
| Administered by | Welsh Revenue Authority | HMRC |
| Nil-rate threshold | £225,000 | £125,000 |
| First-time buyer relief | None | £300,000 nil-rate |
| Filing deadline | 30 days | 14 days |
| Must file if nothing to pay | Usually yes | Depends on transaction |
Official Government Source
For official LTT guidance, rates, and filing information, see the Welsh Revenue Authority:
Land Transaction Tax: overview — GOV.WALESFrequently Asked Questions
What is LTT?
LTT (Land Transaction Tax) is Wales's property transaction tax, which replaced SDLT in Wales from 1 April 2018. It is administered by the Welsh Revenue Authority (WRA).
Is there first-time buyer relief in Wales?
No. There is no first-time buyer relief in Wales. LTT has a single residential nil-rate threshold of £225,000 for all buyers who do not own other property.
How long do you have to pay LTT?
You must file an LTT return and pay any tax due within 30 days of the day after completion. This is longer than SDLT in England, where the deadline is 14 days.
In this article
Emma Richardson, MRICS
Chartered Surveyor & Property Tax Specialist
Emma Richardson is a RICS-qualified Chartered Surveyor with over 12 years of experience in UK property taxation. She founded Calculate My Stamp Duty UK to help buyers understand the complex world of property transaction taxes.