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Stamp Duty News
Stamp duty for first time buyers has been abolished for most purchasers.
Stamp duty for buy to let property has increased substantially from April 2016.
Stamp duty for second homes also attracts a 3 percent surcharge from April. Mobile homes, caravans and houseboats are exempt.
Stamp duty refunds are available for home movers replacing their main residence. The original home must be sold within 3 years.
Stamp duty calculations are different in England and Northern Ireland to LBTT calculations in Scotland and LTT calculations in Wales.
Stamp Duty in Wales
Land Transaction Tax (LTT) has replaced stamp duty in Wales.
How much LTT will be payable?
The LTT calculators below indicate how much LTT will be payable for freehold residential property purchases in Wales.
LTT calculations are provided for both single and additional dwellings and take into account the LTT threshold and rate changes from 10th October 2022.
Land Transaction Tax in Wales
The current LTT system was announced by the Welsh Government in the October 2017 Budget and came into force in April 2018.
LTT is payable when you buy or lease a building or land over a certain price. The new LTT taxation system is broadly consistent with the existing SDLT structure in England and Northern Ireland.
The changes are designed to make the new tax fairer, improve taxation effectiveness and to enable a focus on Welsh needs and priorities.
LTT rates in Wales
New LTT rates and bands were introduced from April 2018. LTT is broadly based on SDLT with buyers paying tax on amounts between bands, not on the full purchase price of a property.
What are the LTT rates in Wales?
From 10th October 2022 the initial zero rate threshold was increased from £180,000 to £225,000 and a new LTT rate of 6% was introduced for LTT band £225,000 to £400,000.
The current LTT rates in Wales are shown in the tables below:
Single Property
| Tax Band | LTT Rate |
|---|---|
| less than £225k | 0% |
| £225k to £400k | 6% |
| £400k to £750k | 7.5% |
| £750k to £1.5m | 10% |
| rest over £1.5m | 12% |
For a single property LTT is exempt on the first £225,000. LTT is charged at 6% on the portion between £225,000 and £400,000, 7.5% on the portion between £400,000 and £750,000, 10% within the next band up to £1.5 million and 12% over that.
Additional Property
| Tax Band | LTT Rate | |
|---|---|---|
| less than £180k | 4%* | |
| £180k to £250k | 7.5% | |
| £250k to £400k | 9% | |
| £400k to £750k | 11.5% | |
| £750k to £1.5m | 14% | |
| rest over £1.5m | 16% | |
| * Under the current LTT system an additional property purchased for less than £40k will attract 0% tax. For purchases from £40k to £180k the LTT rate will be 4% on full purchase price. | ||
For additional property purchases LTT is exempt on the first £40,000. For purchases over 40,000 LTT is charged at 4% on the full purchase price up to £180,000, 7.5% on the portion between £180,000 and £250,000, 9% on the portion between £250,000 and £400,000, 11.5% between £400,000 and £750,000, 14% within the next band up to £1.5 million and 16% over that.
Full details including LTT rates for non residential property can be found on our LTT rates page.
LTT for buy to let and second homes
Under the current LTT system a 4% surcharge applies to all transactions involving the purchase of an additional property. Additional property types include buy to let investments and second homes. In line with the rest of the UK, the surcharge applies to the full purchase price above an initial threshold of £40,000.
Please refer to our LTT second homes page for more information.
LTT for first time buyers
Specific first time buyer relief is not available under the current LTT system but the higher zero tax threshold of £180k should capture many first time purchases.
