Wales LTT Guide
The complete guide to Land Transaction Tax.
£225k
Nil-rate threshold
No FTB
Relief available
5%
Higher rate starts at
WRA
Tax authority
In this article
What is LTT?
Land Transaction Tax (LTT) is Wales's property transaction tax, replacing UK Stamp Duty in Wales from April 2018. It's administered by the Welsh Revenue Authority (WRA).
LTT has the highest nil-rate threshold in the UK at £225,000, making it advantageous for lower-value properties. However, Wales has no first-time buyer relief.
Current LTT Rates (January 2026)
Standard Residential Rates
| Band | Rate |
|---|---|
| £0 - £225,000 | 0% |
| £225,001 - £400,000 | 6% |
| £400,001 - £750,000 | 7.5% |
| £750,001 - £1,500,000 | 10% |
| Over £1,500,000 | 12% |
No First-Time Buyer Relief in Wales
Unlike England and Scotland, Wales does not offer first-time buyer relief. All buyers pay the same LTT rates regardless of whether it's their first property. However, the high nil-rate threshold of £225,000 means many first-time buyers pay no tax anyway.
Higher Rates (Additional Properties)
From 11 December 2024, Wales uses completely separate higher residential rate bands for additional properties, rather than adding a flat surcharge. This replaced the previous flat 4% surcharge. This applies to second homes, buy-to-let properties, and any additional residential property.
Higher Residential Rates Table
| Band | Higher Residential Rate |
|---|---|
| £0 - £180,000 | 5% |
| £180,001 - £250,000 | 8.5% |
| £250,001 - £400,000 | 10% |
| £400,001 - £750,000 | 12.5% |
| £750,001 - £1,500,000 | 15% |
| Over £1,500,000 | 17% |
Example Calculations
| Property Price | Main Home | Second Home |
|---|---|---|
| £200,000 | £0 | £8,000 |
| £300,000 | £4,500 | £16,500 |
| £400,000 | £10,500 | £26,500 |
| £500,000 | £18,000 | £38,000 |
Wales vs England vs Scotland
| Feature | Wales | England | Scotland |
|---|---|---|---|
| Nil Rate | £225,000 | £125,000 | £145,000 |
| FTB Relief | None | £300k | £175k |
| Surcharge | Separate bands | 5% | 8% |
| Authority | WRA | HMRC | Revenue Scot |
Higher Rate Refund
If you paid higher rates because you bought a new home before selling your old one, you can claim a refund from WRA if you sell your previous main residence within 3 years.
The refund claim must be made within 12 months of selling your old property, or within 12 months of filing the LTT return (whichever is later).
Filing LTT
LTT returns must be filed with the Welsh Revenue Authority within 30 days of completion. Your solicitor handles this process and pays the tax from the transaction funds.
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 Stamp Duty Calculator to help buyers understand the complex world of property transaction taxes.