- Last Updated: 05 July 2022
This is a freeview 'At a glance' guide to Land Transaction Tax rates.
What are Welsh Land Transaction Tax (LTT) Rates? How do you calculate Welsh Land Transaction Tax?
The English version is called Stamp Duty Land Tax (SDLT).
The Scottish version is called Land and Buildings Transaction Tax (LBTT).
LTT rates
Residential property rates
From 1 July 2021
|
Band: market price |
Tax Rate |
|
£0- £180,000 |
0 % |
|
£180,000- £250,000 |
3.5 % |
|
£250,000- £400,000 |
5 % |
|
£400,000- £750,000 |
7.5 % |
|
£750,000- £1.5 million |
10 % |
|
£1.5million and over |
12 % |
From 27 July 2020 – 30 June 2021
|
Band: market price |
Tax Rate |
|
£0- £250,000 |
0 % |
|
£250,000- £400,000 |
5 % |
|
£400,000- £750,000 |
7.5 % |
|
£750,000- £1.5 million |
10 % |
|
£1.5million and over |
12 % |
From 1 April 2018 – 26 July 2020
|
Band: market price |
Tax Rate |
|
£0- £180,000 |
0 % |
|
£180,000- £250,000 |
3.5 % |
|
£250,000- £400,000 |
5 % |
|
£400,000- £750,000 |
7.5 % |
|
£750,000- £1.5 million |
10 % |
|
£1.5million and over |
12 % |
Higher residential tax rates
From 22 December 2020
|
Band: market price |
Tax Rate |
|
£0- £180,000 |
4% |
|
£180,000- £250,000 |
7.5 % |
|
£250,000- £400,000 |
9 % |
|
£400,000- £750,000 |
11.5 % |
|
£750,000- £1.5 million |
14 % |
|
£1.5million and over |
16 % |
From 1 April 2018 - 21 December 2020
|
Band: market price |
Tax Rate |
|
£0- £180,000 |
3% |
|
£180,000- £250,000 |
6.5 % |
|
£250,000- £400,000 |
8 % |
|
£400,000- £750,000 |
10.5 % |
|
£750,000- £1.5 million |
13 % |
|
£1.5million and over |
15 % |
Non-residential property transactions
From 22 December 2020
|
Band: market price |
Tax Rate |
|
£0- £225,000 |
0 % |
|
£225,000- £250,000 |
1 % |
|
£250,000- £1 million |
5 % |
|
£1 million and over |
6 % |
From 1 April 2018 - 21 December 2020
|
Band: market price |
Tax Rate |
|
£0- £150,000 |
0 % |
|
£150,000- £250,000 |
1 % |
|
£250,000- £1 million |
5 % |
|
£1 million and over |
6 % |
Leases
From 22 December 2020
|
Net present value threshold |
Rates |
|
£0- £225,000 |
0 % |
|
£225,000- £2 million |
1 % |
|
£2 million and over |
2 % |
From 1 April 2018 - 21 December 2020
|
Net present value threshold |
Rates |
|
£0- £150,000 |
0 % |
|
£150,000- £2 million |
1 % |
|
£2 million and over |
2 % |
LTT At a glance
Wales has introduced the Land Transaction Tax (LTT), its own version of Stamp Duty Land Tax (SDLT), effective from 1 April 2018. It is paid by the purchaser of a leasehold or freehold interest in Welsh land and buildings. It is administered by the Welsh Revenue Authority (WRA).
HMRC will not accept SDLT returns for transactions subject to LTT.
Key LTT features
- LTT is similar in implementation as SDLT.
- It is based on a banding or marginal rate system (as currently in place for SDLT) for both residential and non-residential properties.
- There is no higher 15% rate on the purchase of residential property over £500,000 by a 'non-natural person', such as a company, as this is not seen as relevant for LTT.
- For additional residential properties, an additional 4% (3% prior to 22 December 2020) is payable on top of the main residential rate in each band.
- Agents should register with the WRA 14 days in advance of any transaction.
Coronavirus: temporary increased nil rate band
- Between 27 July 2020 to 30 June 2021 the basic LTT nil rate band has been extended due to Coronavirus.
- Rates for the higher rate residential and non-residential LTT remain unchanged.
Registration
Agents need to register to file LTT returns online. They should need to allow up to two weeks to complete the registration process.
Individuals who are not represented by a solicitor, agent or legal conveyancer, do not need to register to file a return.
There are three steps to registering your organisation in order to file LTT returns online:
- Register your organisation with the Welsh Revenue Authority (WRA).
- Sign up to WRA online services so that you can file your LTT returns online.
- Notify WRA of any additional users you would like to add to your online account.
See How to register
Small print and links
Small print and links
Welsh Land Transaction Tax
What is Land Transaction Tax? How does it operate? What reliefs are available?
SDLT: Stamp Duty Land Tax (subscriber's guide)
What are the SDLT rates? What is exempt from SDLT? What reliefs are available?
External links
SDLT to Land Transaction Tax transitional guidance
Welsh Government website: Land Transaction Tax
The Land Transaction Tax (Administration) (Wales) Regulations 2018 (2018 No.2 (W.2))
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