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.
Contents
On 10 December 2024, the Welsh Government announced changes to the higher residential rates of Land Transaction Tax (LTT). The new rates apply from 11 December 2024.
Overview
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.
| Price threshold | LTT rate |
|---|---|
| The portion up to and including £225,000 | 0% |
| The portion over £225,000 up to and including £400,000 | 6% |
| 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% |
We have transitional guidance for October 2022 main residential rates change. This expands on the regulations and covers which rates will apply to a transaction.
| 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.
| 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% |
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.
| Price threshold | LTT rate |
|---|---|
| The portion up to and including £180,000 | 5% |
| The portion over £180,000 up to and including £250,000 | 8.5% |
| The portion over £250,000 up to and including £400,000 | 10% |
| The portion over £400,000 up to and including £750,000 | 12.5% |
| The portion over £750,000 up to and including £1,500,000 | 15% |
| The portion over £1,500,000 | 17% |
These rates do not apply where contracts were exchanged before this date.
| 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.
| 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.
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.
| 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% |
| 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% |
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.
| 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% |
| 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% |