LTT for Second Homes

Second home LTT rates & calculations


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.

LTT Second Homes

Most additional property transactions in Wales now attract a 3% LTT surcharge.

LTT Surcharge

Under the Welsh LTT system a 3% surcharge normally applies to transactions involing the purchase of an additional residential property. Additional property types include include second homes and buy to let property.

The higher LTT rates have been introduced by the Welsh Government and approved by the National Assembly for Wales. The higher LTT rates are effective from 1st April 2018.

The LTT surcharge will be charged if the purchaser of the new property already owns a dwelling, and the dwelling is not replacing their main residence.

What are the LTT rates in Wales?

The current LTT rates in Wales are shown in the table below:

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 new 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.

Replacing a main residence

Someone who is replacing their main residence can claim a refund of the LTT Surcharge if their old home is sold within 36 months of buying their new one. Refunds can be requested via Welsh Revenue Authority by submitting an LTT amendment and refund form.

Ownership of an existing property

The LTT Surcharge will normally be charged if the purchaser of the new property already owns a residential property, and the property is not replacing their main residence. Property owneship is not limited to Wales and properties can be located anywhere in the world.

Existing ownership of a range of property types including holiday homes, second homes and buy to let investments will be considered when applying the higher LTT surcharge. Subsidiary dwellings within a principal property are normally exempt.

Joint purchasers

The LTT surcharge will be applied to a joint property purchase if any person involved in the transaction already owns a property and does not meet the exemption criteria below. Joint purchasers include Spouses, civil partners, cohabitants and children of these groups.

LTT exemptions

The folowing property transactions are normally exempt from the higher LTT rate.

  1. Property worth less than £40,000.
  2. Non-residential or mixed use transactions.
  3. Transactions involving subsidiary dwellings.
  4. Replacing a main residence.
  5. Retaining interests in former matrimonial home following a divorce or dissolution of civil partnership.
  6. Transactions made by a court appointed deputy for a minor child.

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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Additional Property

Purchase Price

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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.
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