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 2016. 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.
LTT is payable when you buy or lease a building or land over a certain price.
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.
A property is regarded as being "residential" if it complies with certain criteria. In most cases the definition of a residential property applies to:
The current LTT rates are shown in the tables below. For single property purchases the LTT rates reflect the end of the LTT holiday which expired on 30th June 2021.
|Tax Band||LTT Rate|
|less than £180k||0%|
|£180k to £250k||3.5%|
|£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 £180,000. LTT is charged at 3.5% on the portion between £180,000 and £250,000, 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 an additional property 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.
Under the Welsh 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.
An LTT exemption normally applies if someone is replacing their main residence. In such cases the higher LTT rates should not normally apply if the original home is sold within 36 months.
Specific first time buyer relief is not currently available under the Welsh LTT system, but the higher zero tax threshold of £250k should capture most first time purchases.
The higher LTT rates would normally apply to Companies and Trusts buying residential properties.
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.
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.