On 5 July 2016 the Welsh Government published the draft Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Bill setting out proposals for the introduction of the Welsh Land Transaction Tax (LTT) which will replace Stamp Duty Land Tax (SDLT) in April 2018. 

Summary of key features

  • Will replace SDLT from April 2018
  • Based on SDLT
  • Banding system used for calculating tax
  • Bands and rates to be announced closer to introduction
  • Reporting and payment of tax due within 30 days of transaction
  • General Anti-Avoidance Rule to be introduced
  • Higher rate rules for additional properties remain under consultation at this stage

Welsh Land Transaction Tax (LTT)

LTT is primarily based on current SDLT legislation and will be calculated using the banding system for both residential and non-residential properties.

No decision has yet been made regarding bands and rates of tax and this is expected in Autumn 2017 so that the government can assess and analyse economic conditions closer to the introduction of LTT.

LTT will include many of the same reliefs and exemptions as SDLT and will introduce a general anti-avoidance rule to cover all LTT reliefs.  The draft legislation defines an arrangement as a tax avoidance arrangement if

  • The obtaining of a tax advantage for any person is the main purpose, or one of the main purposes, of any person entering into the arrangement, and
  • The arrangement lacks genuine economic or commercial substance other than the obtaining of a tax advantage.

A consultation document has also been published: “Higher Rates for Purchases of Additional Residential Properties” which asks stakeholders their views on how this should apply to LTT.  In particular the document asks whether the higher rate legislation should be more aligned with SDLT or the Scottish Land and Buildings Transaction Tax (LBTT).


The Welsh Government Website www.gov.wales contains more information and links to the draft legislation, explanatory memorandum and consultation document.

England & Wales: Stamp Duty Land Tax: rates & reliefs, SDLT & residential property: higher rate

Scotland: Land & Buildings Transaction Tax, LBTT: Additional Dwelling Supplement