Land Transaction Tax in Wales: rates, higher rates, 30 days

The main residential rates

The Welsh Government gives these rates for transactions on or after 10 October 2022:

As elsewhere in the UK, the rates are marginal: each applies only to the part of the price inside its band.

Our calculation, same rates.

These assume a single home and no higher rates.

Higher residential rates

When you buy a residential property worth £40,000 or more and already own one or more other properties, higher rates usually apply (Welsh Government). Companies also pay them on residential property of £40,000 or more, unless a lease with more than 21 years left applies. Married couples and civil partners are treated as buying together, so higher rates for either one apply to the whole transaction. Property you hold for children under 18 counts toward your ownership.

The higher rates for transactions on or after 11 December 2024 are:

These rates do not apply where contracts were exchanged before 11 December 2024. Our calculation, £300,000: £9,000 + £5,950 + £5,000 = £19,950, against £4,500 at the main rates.

Replacing your main home

You usually avoid the higher rates if you use the new property as your main home and have sold the last main home you owned before you buy the new one, or on the same day. If you sell your previous main home within 3 years of buying the new property, you can usually claim a refund of the difference between the higher and main rates. You cannot claim if you or your spouse or civil partner still own any part of the previous home. A longer period may apply in certain situations; the Welsh Government refers to its technical guidance.

For the refund, evidence includes a signed and dated copy of a TR1, TP1 or contract of sale for the previous main residence (property in England or Wales), or a completion statement for a property elsewhere. The page states no deadline for submitting the claim itself, and processing usually takes 15 to 20 working days. The claim can be made by the buyer, their solicitor or conveyancer, or someone authorised.

First-time buyers

The Welsh Government states: “There’s no first-time buyers’ relief in Wales.” A first-time buyer pays the main rates above. England and Northern Ireland and Scotland do have such a relief; see first-time buyer relief.

Return and payment: 30 days

LTT is self-assessed: you are responsible for filing an accurate return and paying the tax due. You must send the return and pay within 30 days of the day after completion (or of the transaction’s other effective date). You must file a return even if you owe nothing, unless an exception applies.

• With a solicitor or conveyancer: they must file online (online filing is the only option for them since 3 July 2023).
• Without one: you need a paper return, which you request from the Welsh Revenue Authority, saying which language you prefer. You then pay the tax yourself.

LTT applies to freehold purchases, new or existing leaseholds, and property transferred for payment, such as taking on a mortgage or buying a share in a house.

Wales compared with the rest of the UK

SDLT does not apply in Wales. In Scotland the tax is LBTT, with a 30-day return as well. See Stamp Duty Land Tax, LBTT in Scotland and higher rates for additional properties. For the wider picture, see the Wales page.

Which professional to consult

A conveyancer or solicitor files the LTT return and pays the Welsh Revenue Authority. See the conveyancer. To estimate the main-rate bill, you can also use the stamp duty calculator for the UK picture and the Welsh Government calculator for LTT.