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Check if you need to pay Land transaction tax (LTT) when you buy or lease property or land in Wales.

Organisation:
First published:
21 September 2017
Last updated:

On 1 July 2021, the nil rate band of LTT for residential property transactions reverted to £180,000. Our LTT calculator, services and guidance reflect this change.

LTT replaced Stamp Duty Land Tax (SDLT) in Wales from 1 April 2018. The Welsh Revenue Authority (WRA) collects and manages the tax for the Welsh Government.

Who has to pay

You must pay LTT if you buy a property or land over a certain price threshold in Wales. The threshold is where the tax starts to apply.

The current LTT threshold is:

  • £180,000 for residential properties (if you do not own other property)
  • £225,000 for non-residential land and property

Based on the LTT rates and bands set by the Welsh Government.

There are different rules if you already own one or more residential properties, and you may need to pay the higher residential rates. However, if you’re replacing your main residence, the higher rates may not apply. See our guide to higher rates.

You pay the tax when you:

  • buy a freehold property
  • buy a new or existing leasehold
  • are transferred land or property in exchange for payment, for example, you take on a mortgage or buy a share in a house

You must send a LTT return even if there’s nothing to pay, except for certain transactions that do not need a return.

How much you pay

How much you pay depends on if the property is residential or non-residential.

You can use our tax calculator to help you work out how much you’ll pay.

The amount you pay might be affected if you’re buying:

  • a property when you already own one
  • more than one property
  • cross-border property

You can use our checker to find out if a postcode is located in Wales for Land Transaction Tax.

Reliefs

In certain cases, you may be able to get a relief that reduces the amount of tax you pay. A solicitor or conveyancer can help you claim any relief you’re eligible for.

There’s no first-time buyers' relief in Wales.

There are specific reliefs for:

  • buying more than one property (multiple dwellings)
  • moving property around a group structure
  • charities buying property

For a full list refer to our technical guidance on reliefs.

How and when to pay

You must send a LTT return to the WRA and pay the tax within 30 days of the day after completion (or other ‘effective date’ of the transaction).

If you have a solicitor or conveyancer, you can ask them to file your return online and pay the tax on your behalf. They’ll usually add the amount to the sum you pay them.

If they do not do this for you, you’ll need to complete and send a paper return and pay the tax yourself.

You may be charged penalties and interest if you do not file your return and make your payment on time.

When you do not need to file a return

You do not have to file a return and pay LTT if:

  • property is left to you in a will and you do not make any payment for the transfer of it
  • property is transferred due to divorce or dissolution of a civil partnership
  • you buy a freehold property for less than £40,000

For leasehold transactions, you do not have to file and pay LTT if you buy:

  • a new or assigned lease of 7 years or more, as long as both:
    • the premium is less than £40,000
    • the annual rent is less than £1,000
  • a new or assigned lease of less than 7 years, as long as the amount you pay is less than the residential or non-residential LTT zero rate threshold

More information

For complex cases, or if you’re uncertain how the tax applies: