Land Transaction Tax in Wales
LTT will be payable when you buy or lease a building or land over a certain price. The new LTT taxation system will be broadly consistent with the existing SDLT structure.
The proposed LTT 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 will be introduced from April 2018. Under the new LTT system buyers will pay tax on amounts between bands, not on the full purchase price of a property.
What are the new LTT rates in Wales?
The new LTT rates in Wales are shown in the table below:
* Under the existing SDLT structure an additionl property purchased for less than £40k will attract 0% tax. For purchases from £40k to £150k the LTT rate is expected to be 3% on full purchase price but this will be confirmed before April 2018.
less than £150k
£150k to £250k
£250k to £400k
£400k to £750k
£750k to £1.5m
rest over £1.5m
For a single property purchase, no LTT will be paid on the first £150,000. Between £150,000 and £250,000 buyers will pay 2.5% within this band, 5% on the portion between £250,000 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. For additional property, such as buy to let or second homes, there will be a 3% surcharge applied to all bands.
How much LTT will be payable?
The LTT calculators below indicate how much tax will be payable for both single and additional freehold residential property purchases in Wales. The Figures are valid from April 2018 when the SDLT will change to LTT. Figures are based on information currently available and could change before April 2018.