HomeBuyingCosts Guide

LTT Wales Explained

Written and reviewed by James Whitfield · Updated 2026-02-17 · 6 min read

Checked against 2026/27 HMRC, Revenue Scotland & HM Land Registry rates · Editorial standards · Methodology

Compare Welsh scenarios accurately by applying LTT rules directly and checking higher-rate triggers early.

Contents ▾
  1. 1. LTT rates and bands 2026/27
  2. 2. Higher rates for additional dwellings in Wales
  3. 3. Practical differences for buyers near the Welsh border

Key takeaways

  • LTT nil-rate band is £225,000 — Welsh purchases below that pay no LTT.1
  • LTT on a £300,000 home is £4,500; above roughly £400,000 LTT usually exceeds SDLT.1
  • Wales has no first-time buyer LTT relief.1
  • Additional-property higher rates run 5% to 17% and were increased on 11 December 2024.2

Land Transaction Tax (LTT) is the property purchase tax in Wales, replacing SDLT in April 2018. It is administered by the Welsh Revenue Authority (WRA), not HMRC. LTT has its own bands and rates, which differ from both SDLT (England) and LBTT (Scotland). The nil-rate band for LTT is £225,0001 — significantly higher than SDLT's £125,000 — making Welsh purchases below £225,000 completely tax-free. Wales does not currently offer a separate first-time buyer LTT relief; standard rates apply to all buyers.

Buyers purchasing in Wales must use LTT rates. Because the LTT nil-rate band (£225,000) is much higher than England's (£125,000), and the 6% rate above £225,000 is also higher than England's 2%/5% rates in the same range, LTT can produce lower or higher tax depending on the purchase price. Always use the Wales setting in the calculator for Welsh properties.

Worked examples — home mover typical fees

Price England/NI tax Scotland tax Wales tax
£300,000 £5,000 £4,600 £4,500
£500,000 £15,000 £23,350 £18,000
£750,000 £27,500 £48,350 £36,750

LTT rates and bands 2026/27

Current LTT rates for residential purchases in Wales: 0% on the first £225,000; 6% on £225,001 to £400,000; 7.5% on £400,001 to £750,000; 10% on £750,001 to £1,500,000; and 12% above £1,500,000. On a £300,000 purchase: 0% on £0–£225,000 = £0; 6% on £225,001–£300,000 = £4,500. Total LTT: £4,500.1 Compare this with a £300,000 purchase in England under SDLT: approximately £5,000. At this price point, Wales is slightly cheaper.

However, at £400,000 the comparison changes. LTT: 0% on £0–£225,000 = £0; 6% on £225,001–£400,000 = £10,500. Total: £10,500. SDLT (England, standard buyer): 0% on £0–£125,000 = £0; 2% on £125,001–£250,000 = £2,500; 5% on £250,001–£400,000 = £7,500. Total: £10,000. At £400,000, the Welsh LTT bill is £500 more than SDLT. Above £400,000, LTT tends to be more expensive than SDLT for most buyers.

Wales does not have a first-time buyer LTT relief. All residential buyers in Wales pay LTT at standard rates. This is a material difference from England, where first-time buyers save up to £5,000 on purchases up to £500,000.

Higher rates for additional dwellings in Wales

Wales applies a higher-rate LTT surcharge for additional residential property purchases. The higher rates for additional properties are: 5% on the first £180,000; 8.5% on £180,001–£250,000; 10% on £250,001–£400,000; 12.5% on £400,001–£750,000; 15% on £750,001–£1,500,000; and 17% above £1,500,000.2 These are different from the SDLT additional property rates (which use a flat 5% surcharge on top of standard bands), so do not apply SDLT-logic to Welsh additional property calculations.

The Welsh additional property surcharge can be reclaimed if you sell a previous main residence within 36 months of completing the Welsh purchase. The refund process is administered by the Welsh Revenue Authority and follows a similar structure to the HMRC SDLT refund process.

LTT must be filed with the Welsh Revenue Authority within 30 days of completion.1 Your Welsh solicitor handles the return and payment as part of the conveyancing process. The WRA is a separate body from HMRC — SDLT returns are not filed for Welsh properties.

Practical differences for buyers near the Welsh border

Properties near the border between England and Wales can cause confusion about which transaction tax applies. The tax follows the location of the property, not the buyer's location. A property in Monmouthshire (Wales) is subject to LTT; a property in Herefordshire (England) is subject to SDLT. The registered title and address will confirm the jurisdiction. If you are unsure, ask your solicitor — using the wrong tax regime and HMRC/WRA filing will result in penalties.

The conveyancing process itself follows the same structure in Wales as in England — exchange, completion, title registration with HM Land Registry. The difference is only in the transaction tax regime and the filing authority. Welsh solicitors are familiar with LTT filing and the process should be seamless from a buyer's perspective.

The LTT nil-rate band of £225,000 means that buyers in areas of Wales with lower property values may pay no LTT at all. According to Land Registry data, median property prices in many parts of Wales (including parts of Powys, Gwynedd and the Valleys) are below £225,000, meaning LTT of £0 applies to a meaningful proportion of Welsh transactions.

Use the calculator for this topic

Open calculator Stamp duty on £300,000 Cost to buy £500,000 First-time buyer £300,000 Second-home £500,000 Moving-home £300,000 All guides London page Manchester page County pages Sources and assumptions Cardiff page

Frequently asked questions

What is LTT and who pays it?+

Land Transaction Tax (LTT) is the property purchase tax in Wales, replacing SDLT since April 2018. It is administered by the Welsh Revenue Authority (WRA). All residential buyers in Wales pay LTT — SDLT does not apply to Welsh properties. LTT must be filed within 30 days of completion.

What are the LTT rates in Wales in 2026/27?+

Standard residential rates: 0% on the first £225,000; 6% on £225,001–£400,000; 7.5% on £400,001–£750,000; 10% on £750,001–£1,500,000; 12% above £1,500,000. There is no first-time buyer relief under LTT. Additional property higher rates apply separately.

How much is LTT on a £250,000 house in Wales?+

0% on the first £225,000 = £0; 6% on £225,001–£250,000 = £1,500. Total LTT: £1,500. For comparison, the same purchase in England under SDLT (standard rates) would be £2,500.

Does Wales offer first-time buyer LTT relief?+

No. Wales does not currently offer a separate first-time buyer LTT relief. All residential buyers in Wales pay LTT at standard rates. The higher nil-rate band (£225,000) provides some benefit compared to England's £125,000 threshold, but there is no additional relief for first-time buyers specifically.

Is LTT more or less than stamp duty in England?+

It depends on the purchase price. Below approximately £250,000, LTT is typically less than SDLT (because the nil-rate band is higher at £225,000). Above £350,000–£400,000, LTT often exceeds SDLT for standard buyers because the 6% and 7.5% LTT rates are higher than SDLT's 5% band. The calculator gives the exact comparison.

When does LTT have to be filed?+

Within 30 days of completion. Your solicitor files the LTT return with the Welsh Revenue Authority and makes the payment on your behalf, using the completion funds you transfer. This is a different body from HMRC — SDLT filings are not made for Welsh properties.

What property is subject to LTT?+

Any residential or commercial property located in Wales. The tax follows the property location, not the buyer's address. If the property is in Wales — confirmed by its title register and address — LTT applies and SDLT does not. For properties very near the England-Wales border, confirm the jurisdiction with your solicitor using the title register.

Sources & references

Official

The figures and rules on this page are drawn from the official UK government sources below. Rates are the confirmed 2026/27 amounts. Each link opens the relevant official page in a new tab.

  1. Welsh Revenue Authority — Land Transaction Tax rates and bands www.gov.wales/land-transaction-tax-rates-and-bands Welsh LTT main and higher residential rates.
  2. Welsh Government — Land Transaction Tax guidance www.gov.wales/land-transaction-tax-guidance LTT higher rates for additional dwellings and reliefs.
  3. GOV.UK — Stamp Duty Land Tax: residential property rates www.gov.uk/stamp-duty-land-tax/residential-property-rates Current band-by-band residential SDLT rates.
  4. GOV.UK — Higher rates for additional properties www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property The 5% additional-property surcharge and 36-month refund rules.
  5. Revenue Scotland — LBTT residential property revenue.scot/taxes/land-buildings-transaction-tax/residential-property Scottish LBTT rates and first-time buyer relief.
  6. GOV.UK — Pay Stamp Duty Land Tax www.gov.uk/pay-stamp-duty-land-tax Filing the SDLT return and paying within 14 days of completion.

Verified against published UK government guidance. See also Methodology and Editorial standards.

Related guides

What Is Stamp Duty? UK Rates & Bands 0%–12% (2026/27) When Do You Pay Stamp Duty? 14 Days After Completion (2026/27) First-Time Buyer Stamp Duty Relief Explained (2026/27) Second-Home Stamp Duty Surcharge Replacing Your Main Residence and Refunds Conveyancing Fees UK 2026: Typical Cost £1,200–£2,500 All-In

Written and reviewed by James Whitfield and the HomeBuyingCosts editorial team.

Stamp duty, LBTT and LTT figures are checked against GOV.UK, Revenue Scotland and GOV.WALES. We explain every cost of buying a home in plain English, with worked examples. Editorial standards · About us