Category: Buyer, First Time Buyer, Sale & Purchase
Land Transaction Tax (LTT) replaced Stamp Duty in Wales in 2018, offering a distinct system for calculating taxes on property purchases.
There are now three distinct land tax regimes in operation across the UK. Stamp Duty Land Tax applies in England and Northern Ireland. Instead of stamp duty, Wales now has the Land Transaction Tax (LTT), while Scotland operates the Land and Buildings Transaction Tax (LBTT).
Homeward Legal works with conveyancing solicitors across England and Wales.
Therefore, any property lawyer dealing with your home purchase in Wales will provide the information you need on exactly how much your LTT bill will be.
Land Transaction Tax rates in Wales
While England has exemptions for first-time buyers, there is no specific exemption for FTBs in Wales.
However, no tax is paid on any purchase up to £225,000, which the Welsh Government is confident covers most first-time property buyers in the principality.
LTT operates on a similar sliding scale to that used by SDLT in England. And just as with SDLT, your conveyancing solicitor will complete a tax return with the Welsh Revenue Agency within 14 days of completion.
Use the Welsh Government's LTT calculator to figure out how much you will pay when buying in stamp duty in Wales.
Here are the 2025 rates for LTT in Wales:
| Purchase Price Bands (£) | LTT rate (%) |
Less than £225,000 | 0% |
£225,001 to £400,000 | 6% |
£400,001 to £750,000 | 7.5% |
£750,001 to £1,500,000 | 10% |
More than £1,500,000 | 12% |
Land Transaction Tax rates in Wales on second homes
Here are the LTT rates in Wales for second homes:
| Purchase Price Bands (£) | LTT rate (%) |
Up to £180,000 | 4% |
£180,001 to £250,000 | 7.5% |
£250,001 to £400,000 | 9% |
£400,001 to £750,000 | 11.5% |
£750,001 to £1,500,000 | 14% |
More than £1,500,000 | 16% |
How to pay Land Transaction Tax
Your solicitor (or you) must file a Land Transaction Tax (LTT) return, even if no tax is due. It's your responsibility to ensure it's submitted by the deadline.
How long do you have to pay Land Transaction Tax?
You must submit your Land Transaction Tax return and settle any tax owed within 30 days of purchasing your property. Failing to do so may result in penalties and interest from the Welsh Revenue Authority.
Land Transaction Tax relief
Certain types of transactions may qualify for relief, which can reduce the Land Transaction Tax owed. Full details on these LTT reliefs are available in the Welsh government's official guidance on relief.
Land transaction tax exemptions
A transaction is exempt from LTT, and you don't need to file a return if:
- No payment is made.
- The property is inherited through a will.
- The property is transferred due to a divorce.
- The property is freehold and valued under £40,000.
- The property is leasehold, valued under £40,000, with an annual rent under £1,000 and a lease of seven years or more.
- The property is leasehold, valued below the LTT zero-rate threshold, and the lease is under seven years.
You can learn more about LTT exemptions on the Welsh government website.
Do you need help with Land Transaction Tax?
If you're navigating the complexities of Land Transaction Tax (LTT) in Wales, Homeward Legal's expert team is here to help.
Whether you need assistance with calculations, exemptions, or submitting your LTT return on time, we offer clear guidance and support every step of the way.
Contact us today on for reliable, professional advice to ensure your property transaction goes smoothly.