There are different Land Transaction Tax (LTT) rates and bands for different types of property.

First published:
13 February 2018
Last updated:

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.

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%

You can use the WRA tax calculator to work out how much tax you will pay.

Example

If you buy a house for £260,000, you will pay:

0% on the first £180,000 £0
3.5% on the next £70,000 £2450
5% on the final £10,000 £500
The total LTT will be £2,950
  • The total value you pay LTT on is usually the price you pay for the property or land, but it might include other types of payment such as goods, works or services, release from a debt, or transfer of a debt, including the value of any outstanding mortgage.
  • LTT does not apply to rents payable under a lease for residential property.

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.

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%

You can use the WRA tax calculator to work out how much tax you will pay.

Example

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

3% on the first £180,000 £5400
6.5% on the next £70,000 £4550
8% on the final £10,000 £800
The total LTT will be £10,750
  • If you are replacing your main residence the higher rates may not apply
  • When companies buy residential properties they will have to pay the residential higher rates
  • When trusts buy residential properties they may have to pay the residential higher rates

Non-residential property tax rates

When you buy non-residential property (freehold or leasehold) such as shops, offices, or agricultural land the following rates will apply to the portion of the price you pay in each band.

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%

You can use the WRA tax calculator to work out how much tax you will pay.

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).

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 the WRA 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.

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 are granted a new lease on an office with an NPV of £170,000, you will pay:

0% on the first £150,000 £0
1% on the final £20,000 £200
The total LTT will be £200