Land Transaction Tax for non-residential and mixed use property

How much you pay depends on if the property is:

• residential
• non-residential
• mixed use

The amount you pay is based on the LTT rates and bands set by the Welsh Government.

Non-residential means any land and buildings that are not residential property.

Non-residential property includes:

• shops
• offices
• agricultural land (working farmland)
• bare land

Non-residential land or property is likely to have been commercially exploited by machinery or used for business.

A ‘mixed’ property (also known as mixed use) has both residential and non-residential elements.

For example:

• a building which contains a shop and a flat
• a house with a doctor’s surgery
• a working farm with land that’s been farmed for commercial gain

If you buy a non-residential or mixed use property or land, you pay the non-residential tax rates.

For chargeable leases, you pay the following:

• the non-residential rent rates for the rent element of the lease
• the non-residential tax rates for the premium

A transaction is likely to be residential if at the effective date the land or property:

• forms part of the garden or grounds of a dwelling
• is for the benefit of a dwelling

For example, a cottage with paddocks or stables for personal use.

It’s not always clear if the following are residential, non-residential, or mixed use:

• derelict buildings
• bed and breakfasts (B&Bs), guest houses or holiday lettings
• student accommodation

To help you decide, check our guidance on ‘is the building a dwelling’.

In most cases, if you buy land attached to a dwelling, it will be garden and grounds, making it residential. The main exception to this is working farmland.

To determine whether land attached to a dwelling is residential or non-residential, you need to consider if it’s been used for business or trade.

We have tests to help you decide if land is non-residential.

These tests should be applied to the seller, up to and including the effective date.

The position is not always clear for land:

• with rights of way
• easements
• where part of it’s been fenced off

To help you decide, please check within our guidance on garden and grounds.

You can use our tax calculator to help you work out how much you’ll pay once you’ve decided if the property is:

• residential
• non-residential
• mixed used

To pay the right amount of tax, you must also select the right property type when completing your tax return.

For a more detailed explanation, or if you’re uncertain how the tax applies:

• use our interpretation guidance
• watch our short explainer video on mixed use
• you may want to check with a solicitor or conveyancer
• you can contact us