What is land transaction tax in Wales?
Land transaction tax in Wales (previously known as welsh stamp duty) is payable when you buy land or property over a certain price. You can use the above land transaction tax calculator to work your liability using the current tax band rates.
The process for paying your land transaction tax is easy for buyers because your solicitor will normally do this for you. After completion the solicitor files a Land Transaction Tax (LTT) Form with the Welsh Revenue Authority online (although some can still submit a paper submission). Even if there is no LTT liability, the solicitor is still required to file a tax return.
Any land transaction tax payable must be paid within 30 days after the completion date. Although there is this 30 day payment term, if you are getting a mortgage, it is part of the mortgage lender's regulations that the solicitor is in funds with the land transaction tax before completion can take place. This means that you should be prepared to make payment to your solicitor for any land transaction tax liability the day before your completion date is set.
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How much is the land transaction tax in Wales?
The amount of Wales land transaction tax that you pay depends on whether the land/property is residential or non-residential or mixed use. The above Wales Stamp Duty Calculator should only be used for Residential land or property.
Land Transaction rates and bands (Wales)
Transactions since 10 October 2022
Price Threshold | Rate |
The portion up to and including £225,000 | 0% |
The portion over £225,000 up to and including £400,000 | 6% |
The portion over £400,000 up to and including £750,000 | 7.5% |
The portion over £750,000 up to and including £1,500,000 | 10% |
The portion over £1,500,000 | 12% |
Source: Gov.Wales
You pay Stamp Duty on the consideration paid for the land or property. In most cases is is the amount of money paid by the buyer to the seller for the property, however consideration isn't always an exchange of money, it could also be:
- giving of goods (giving a personal possession in exchange for the land/property);
- providing works or services (giving work or a service in exchange for the land or property);
- release from a debt; and/or
- transfer of a debt, including the balance of an outstanding mortgage;
The amountof the consideration (for example the value of the goods given) is the sum used to calculate the stamp duty/land transaction tax on. If you are looking to transfer a property between family then you need to read this article - Gifting Property - 4 ways to gift your property
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