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