Land transaction tax (LTT) replaced stamp duty land tax in Wales from April 2018 and is collected by the Welsh Revenue Authority. The tax collected is used to support public services in Wales.

Organisation:
First published:
21 September 2017
Last updated:

It is paid when you buy or lease a building or land over a certain price.

All queries on stamp duty land tax in Wales up to and including 31 March 2018 should be directed to HMRC.

The Welsh Tax Policy Report has been published by the Welsh Government and includes the new rates and bands for land transaction tax and landfill disposals tax, which came into  effect in Wales from 1 April 2018.

Overview

You must pay LTT if you buy a property or land over a certain price in Wales.

The current LTT threshold is £180,000 for residential properties and £150,000 for non-residential land and properties.

There are different rules if you already own one or more residential properties and you may need to pay the higher residential rates. However, if you are replacing your main residence the higher rates may not apply.

You pay the tax when you:

  • buy a freehold property
  • buy a new or existing leasehold
  • are transferred land or property in exchange for payment, e.g. you take on a mortgage or buy a share in a house

How much you pay

How much you pay depends on whether the land or property is:

  • residential 
  • non-residential or mixed-use 

The tax rates and bands are set by Welsh Government and approved by the National Assembly for Wales.

You can use our Land Transaction Tax calculator to work out how much tax you’ll pay.

How and when to pay

You must send an LTT return to WRA and pay the tax within 30 days of the day after completion (or other effective date of the transaction).

If you have a solicitor, agent or conveyancer, they’ll usually file your return and pay the tax on your behalf if you ask them to and add the amount to the sum you pay them.

If they don’t do this for you, you can file a return and pay the tax yourself using the paper return.

When you don’t need to file a return

There are certain situations where you don’t need to send a return to WRA. 

You don’t have to pay LTT or file a return if:

  • no money or other payment changes hands 
  • property is left to you in a will and you do not make any payment for the transfer of this property to you
  • property is transferred because of divorce or dissolution of a civil partnership
  • you buy a freehold property for less than £40,000
  • you buy a new or assigned lease of 7 years or more, as long as the premium is less than £40,000 and the annual rent is less than £1,000
  • you buy a new or assigned lease of less than 7 years, as long as the amount you pay is less than the residential or non-residential LTT zero rate threshold

You may be charged penalties and interest if you don’t file your return and make your payment within 30 days of the day after completion (or other effective date of the transaction).