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.
Land Transaction Tax (LTT) has replaced stamp duty in Wales.
The calculators have been updated following the introduction of a LTT holiday until 31st March 2021.
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 holiday which is available until 31st March 2021.
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.
A land transaction tax holiday has now been implemented and will be applied to all single residential purchases until 31st March 2021. The initial threshold has risen from £180,000 to £250,000.
Additional property purchases, including buy to let investments and second homes, will not benefit from the higher initial stamp duty threshold of £250,000.
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.
The current LTT rates in Wales are shown in the tables below:
|Tax Band||LTT Rate|
|less than £250k||0%|
|£250k to £400k||5%|
|£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 £250,000. LTT is charged at 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.
|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.
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.
Specific first time buyer relief is not available under the current LTT system but the higher zero tax threshold of £250k should capture most first time purchases.
Stamp duty calculations with new stamp duty thresholds. One ckick SDLT Calculations!
Following Changes in 2018, Land Transaction Tax (LTT) has replaced Stamp Duty in Wales.