Land Transaction Tax (LTT)
Wales
Land Transaction Tax (LTT) is the tax paid on buying property or land in Wales, set by the Welsh Government and collected by the Welsh Revenue Authority. It replaced Stamp Duty Land Tax in Wales on 1 April 2018 under the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017. Landlords buying a rental property in Wales usually pay LTT at the higher residential rates.
Main residential rates
The main residential rates apply to a buyer’s only or main home and have been unchanged since 10 October 2022. There is no tax on the first £225,000, then 6% on the portion from £225,000 to £400,000, 7.5% up to £750,000, 10% up to £1.5 million and 12% above that, according to the Welsh Government’s LTT rates and bands. Wales has no separate first-time buyer relief.
Higher residential rates for landlords
The higher residential rates apply when a buyer purchases a dwelling for £40,000 or more and already owns another residential property worth £40,000 or more, and generally whenever a company buys a dwelling. Since 11 December 2024 they have been 5% on the portion up to £180,000, 8.5% up to £250,000, 10% up to £400,000, 12.5% up to £750,000, 15% up to £1.5 million and 17% above. England adds a 5% surcharge to its standard rates, whereas Wales applies a separate set of higher bands from the first pound.
On a £200,000 buy-to-let purchase, that means 5% on the first £180,000 (£9,000) plus 8.5% on the remaining £20,000 (£1,700), a total of £10,700. The same property bought as a main home would pay nothing, because it falls within the £225,000 nil-rate band. From working with landlords buying in Wales, that gap is the figure most often missing from a first purchase budget.
Refunds, returns and reliefs
A buyer who pays the higher rates because they have not yet sold their previous main home can claim a refund of the difference if they sell it within three years. An LTT return must be filed with the Welsh Revenue Authority, and the tax paid, within 30 days of completion, which the buyer’s conveyancer normally handles. Wales has kept multiple dwellings relief for purchases of more than one dwelling, which England abolished from 1 June 2024.
LTT and the rest of the UK
LTT applies only to property in Wales. Purchases in England and Northern Ireland pay Stamp Duty Land Tax, and purchases in Scotland pay Land and Buildings Transaction Tax. Our guide to stamp duty for landlords covers the purchase tax rules in more detail. Landlords letting in Wales must also register with Rent Smart Wales before letting.
August’s expenses tracking records purchase costs such as LTT against each property. That matters on sale, because LTT cannot be deducted from rental income but forms part of the property’s cost when calculating capital gains tax.
Frequently asked questions
Do landlords pay stamp duty in Wales?
No. Stamp Duty Land Tax does not apply in Wales. Landlords pay Land Transaction Tax instead, usually at the higher residential rates, which start at 5% on the first £180,000.
How much LTT is due on a buy-to-let property in Wales?
A buy-to-let purchase pays the higher residential rates, from 5% on the portion up to £180,000 rising to 17% above £1.5 million. A £250,000 purchase pays £9,000 on the first £180,000 plus £5,950 on the next £70,000, a total of £14,950.
Can I get the higher rates of LTT refunded?
Yes, if you paid them only because you had not yet sold your previous main home. Sell that home within three years of the purchase and you can claim back the difference between the higher and main rates from the Welsh Revenue Authority.
