Skip to main content

There are different Land Transaction Tax (LTT) rates and bands for different types of property. Welsh Ministers set the rates and bands for LTT. They’re approved by the Welsh Parliament.

Organisation:
First published:
13 February 2018
Last updated:

The amount of LTT you pay depends on: 

  • when you bought the property 
  • whether it’s residential or not 
  • how much you paid for it 

The ‘effective date’ is usually the day you completed the purchase of the property.

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

Main residential tax rates

When you buy a residential property (freehold or leasehold) the following rates will apply to the portion of the price you pay in each band.

Transactions with an effective date on or after 1 July 2021
Price threshold LTT rate
The portion up to and including £180,000 0%
The portion over £180,000 up to and including £250,000 3.5%
The portion over £250,000 up to and including £400,000 5%
The portion over £400,000 up to and including £750,000 7,5%
The portion over £750,000 up to and including £1,500,000 10%
The portion over £1,500,000 12%

These rates also apply 1 April 2018 to 26 July 2020.

Example

In August 2021 you buy a house for £260,000. You pay the following:

  • 0% on the first £180,000 = £0
  • 3.5% on the next £70,000 = £2,450
  • 5% on the final £10,000 = 500
  • total LTT = £2,950
Transactions with an effective date from 27 July 2020 to 30 June 2021
Price threshold LTT rate
The portion up to and including £250,000 0%
The portion over £250,000 up to and including £400,000 5%
The portion over £400,000 up to and including £750,000 7.5%
The portion over £750,000 up to and including £1,500,000 10%
The portion over £1,500,000 12%

Example

In May 2021 you buy a house for £300,000. You pay the following:

  • 0% on the first £250,000 = £0
  • 5% on the final £50,000 = £2,500
  • total LTT = £2,500

Higher residential tax rates

When you buy a residential property and you already own one or more residential properties you may need to pay the higher residential rates.

If you're replacing your main residence the higher rates may not apply.

When:

  • companies buy residential properties, they'll have to pay the residential higher rates
  • trusts buy residential properties, they may have to pay the residential higher rates

The following rates will apply to the portion of the price you pay in each band. 

Transactions with an effective date between 1 April 2018 and 21 December 2020
Price threshold LTT rate
The portion up to and including £180,000 3%
The portion over £180,000 up to and including £250,000 6.5%
The portion over £250,000 up to and including £400,000 8%
The portion over £400,000 up to and including £750,000 10.5%
The portion over £750,000 up to and including £1,500,000 13%
The portion over £1,500,000 15%

These rates also apply where the effective date is after 21 December 2020, but contracts were exchanged before this date. 

Example

If you buy a second home for £260,000, you'll pay:

Rates and bands Tax due
3% on the first £180,000 £5,400
6.5% on the next £70,000 £4,550
8% on the final £10,000 £800
The total LTT will be £10,750
Transactions with an effective date on or after 22 December 2020 
Price threshold LTT rate
The portion up to and including £180,000 4%
The portion over £180,000 up to and including £250,000 7.5%
The portion over £250,000 up to and including £400,000 9%
The portion over £400,000 up to and including £750,000 11.5%
The portion over £750,000 up to and including £1,500,000 14%
The portion over £1,500,000 16%

These rates do not apply where contracts were exchanged before this date. 

Example

If you buy a second home for £260,000, you’ll pay:

Rates and bands Tax due
4% on the first £180,000 £7,200
7.5% on the next £70,000 £5,250
9% on the final £10,000 £900
The total LTT will be £13,350

Non-residential property tax rates

These rates apply when you buy non-residential property (freehold or leasehold) such as:

  • shops
  • offices
  • agricultural land

The following rates will apply to the portion of the price you pay in each band.

Transactions with an effective date between 1 April 2018 and 21 December 2020
Price threshold LTT rate
The portion up to and including £150,000 0%
The portion over £150,000 up to and including £250,000 1%
The portion over £250,000 up to and including £1,000,000 5%
The portion over £1,000,000 6%
Transactions with an effective date on or after 22 December 2020
Price threshold LTT rate
The portion up to and including £225,000 0%
The portion over £225,000 up to and including £250,000 1%
The portion over £250,000 up to and including £1,000,000 5%
The portion over £1,000,000 6%

Non-residential property rent

If you pay rent on the grant of a lease, the 0% tax band may not apply to the lease premium (see table above), this is called the ‘relevant rent’ rule. The relevant rent threshold changed in February 2021.

For any transaction completed:

  • before 4 February 2021, the relevant rent threshold is £9,000
  • on or after 4 February 2021, the relevant rent threshold is £13,500

Please see our technical guidance on leases for more information on whether this rule applies to you.

The rent over the term of a newly granted lease may be liable to LTT. The tax due is calculated on its net present value (NPV).

You can use our tax calculator to work out the rental figure on which you pay tax.

Where tax is payable on rents due under the term of a lease, the following rates apply.

Transactions with an effective date between 1 April 2018 and 21 December 2020
NPV threshold LTT rate
The portion up to and including £150,000 0%
The portion over £150,000 up to and including £2,000,000 1%
The portion over £2,000,000 2%

Example

If you're granted a new lease on an office with an NPV of £170,000, you'll pay:

Rates and bands Tax due
0% on the first £150,000 £0
1% on the final £20,000 £200
The total LTT will be £200
Transactions with an effective date on or after 22 December 2020
NPV threshold LTT rate
The portion up to and including £225,000 0%
The portion over £225,000 up to and including £2,000,000 1%
The portion over £2,000,000 2%