LTT Rates

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.

Land Transaction Tax Rates Wales

LTT is payable when you buy or lease a building or land over a certain price.

LTT rates

New LTT rates and bands were introduced from April 2018. For residential purchases, LTT is broadly based on SDLT with buyers paying tax on amounts between bands, not on the full purchase price of a property.

Residential LTT rates

A property is regarded as being "residential" if it complies with certain criteria. In most cases the definition of a residential property applies to:

  1. Any building that is used or is suitable for use as a dwelling, or is in the process of being constructed or adapted for such use.
  2. Land that is or forms part of the garden or grounds of a dwelling (including any building or other structure on such land).
  3. An interest in or right over land that subsists for the benefit of a building within a dwelling, or of land within a dwelling.
What are the residential LTT rates?

The current freehold residential LTT rates are shown in the table below. The table shows both standard LTT rates, and the higher LTT rates which include an additional 3% surcharge on all bands above an initial threshold of £40,000.

Tax Band Normal Rate Additional Property
less than £180k 0% 3%*
£180k to £250k 3.5% 6.5%
£250k to £400k 5% 8%
£400k to £750k 7.5% 10.5%
£750k to £1.5m 10% 13%
rest over £1.5m 12% 15%
* Under the LTT structure an additional property purchased for less than £40k will attract 0% tax. For purchases from £40k to £180k the LTT rate will be 3% on full purchase price.
LTT for buy to let and second homes

Under the new LTT system a 3% surcharge applies to all transactions involing 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.

Replacing a main residence

An LTT exemption normally applies if someone is replacing their main residence. In such a case the higher LTT rates would not apply.

LTT for first time buyers

Specific first time buyer relief is not currently available under the new LTT system, but the higher zero tax threshold of £180k should capture most first time purchases.

Companies and Trusts

The higher LTT rates would normally apply to Companies and Trusts buying residential properties.

Leases of residential property

Leases of residential property are exempt from LTT and no tax will be payable. This means LTT does not apply to rents payable under a lease for residential property.

How much LTT will be payable?

The LTT calculators below indicate how much tax is payable for both single and additional freehold residential property purchases in Wales. The Figures are valid from April 2018.

Single Property


Purchase Price

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Calculate


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Additional Property


Purchase Price

(Enter numbers only)

Calculate


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Non residential LTT rates

There are specific LTT rates for non residential properties, and these are different to the LTT rates applied to residential property transactions. Examples of non residential properties include shops, offices and agricultural land .

What are the non residential LTT rates?

The current LTT rates applied to non residential property transactions are shown in the table below:

Tax Band LTT Rate
Up to £150k 0%
£150k to £250k 1%
£250k to £1m 5%
Above £1m 6%

If the value is above the payment threshold, LTT is charged at the appropriate rate on the amount of the chargeable element within that band.

Non residential property rent

For chargeable leases, the following LTT rates and bands apply to the Net Present Value (NPV) of the rent payable under the lease:w:

NPV of rent payable LTT Rate
Up to £150k 0%
£150k to £2m 1%
Above £2m 2%
The LTT calculator is designed to give you an idea of your LTT liability when buying a freehold residential property in Wales. LTT calculations are rounded down to the nearest pound. The information on this page should be used for guidance only.
SDLT Calculator

Stamp duty calculations with new stamp duty thresholds. One ckick SDLT Calculations!

SDLT Rates

UK stamp duty rates showing new and old SDLT thresholds. Instantly check UK SDLT rates.

LTT Calculator

Following Changes in 2018, Land Transaction Tax (LTT) has replaced Stamp Duty in Wales.

LBTT Calculator

Stamp Duty in Scotland is now called Land and Buildings Transaction Tax (LBTT).