Wales Stamp Duty Calculator
What is the Land Transaction Tax in Wales?
Land Transaction Tax in Wales (previously known as Welsh stamp duty) is payable when you buy land or property. It operates with different rates from Stamp Duty Land Tax in England.
Types of transactions
The following transactions fall under Land Transaction Tax rules, though you only pay tax if the consideration exceeds your relevant threshold:
- Purchase: Buying a residential property in Wales. Purchases in England are subject to different stamp duty rates.
- Transfer of equity: Any transfer of equity involving consideration. Read more: What stamp duty is paid on a transfer of equity?
How is Land Transaction Tax paid:
Your conveyancer or solicitor files a Land Transaction Tax return with the Welsh Revenue Authority online following completion of your purchase or transfer of equity. Solicitors must file a tax return even if their purchase incurs zero tax liability.
Your solicitor will obtain the tax due from you prior to completion, and this must be paid within 30 days of the completion date.
How much is the Land Transaction Tax in Wales?
Land Transaction Tax rates depend on whether the property is residential, non-residential, or mixed-use. Our Wales Stamp Duty Calculator focuses on residential transactions where there are two tax bands:
- Main Residential Tax Rates: These apply to most residential purchases, including your first home or when replacing your main residence. If you already own another residential property anywhere in the world, you must pay higher rates unless the new property is worth less than £40,000.
- Higher Residential Tax Rates: These apply if you are buying a residential property in addition to already owning another property. If you are both buying and selling, you can ignore this rate in most circumstances. Companies buying residential properties must pay the higher rate. Trusts buying residential properties often face a higher rate depending on their structure.
We show below the Main Residential Tax Rates and the Higher Residential Tax Rates:
What are the Main Residential Tax Rates in Wales?
Transactions since 10 October 2022
|
Price Threshold
|
Main 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
What are the Higher Residential Tax Rates in Wales?
The Welsh Government increased the higher rates of Land Transaction Tax for additional properties on 11 December 2024. These rates apply as follows:
|
Price Threshold
|
Higher Rate
|
|
The portion up to and including £180,000
|
5%
|
|
The portion over £180,000 up to and including £250,000
|
8.5%
|
|
The portion over £250,000 up to and including £400,000
|
10%
|
|
The portion over £400,000 up to and including £750,000
|
12.5%
|
|
The portion over £750,000 up to and including £1,500,000
|
15%
|
|
The portion over £1,500,000
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17%
|
Source: Gov.Wales
Example of how the Land Transaction Tax is calculated?
Your LTT liability is calculated as a percentage of the consideration paid for the land or property. In most cases, consideration is the money the buyer pays the seller for the property, including cash and mortgage funds.
For example, if you buy your first residential home for £250,000, you pay LTT at 0% on the first £225,000, and 6% on the portion from £225,000 to £250,000. 6% of £25,000 equates to £1,500.
However, consideration is not always a direct exchange of money. It can also include:
- Giving of goods or personal possessions in exchange for the property.
- Providing works or services in exchange for the property.
- Release from a debt.
- Transfer of a debt, including the balance of an outstanding mortgage.
The total value of the consideration calculates the tax liability. If you intend to transfer a property for zero consideration, read our guide on Gifting Property to understand the rules between spouses, parents, and children, alongside potential Capital Gains Tax implications.
Looking for a conveyancing solicitor in Wales?
Our panel solicitors are based in Wales (Cardiff and Pontypridd). We provide fixed-fee conveyancing quotes that clearly detail your tax liability.
Trusted by thousands each year, you are in safe hands.
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Key differences between English and Welsh stamp duty
While both tax systems apply to property purchases, Land Transaction Tax in Wales operates under different rules, thresholds, and administrative bodies compared to Stamp Duty Land Tax in England.
- Tax authority: The Welsh Revenue Authority manages Land Transaction Tax. HM Revenue and Customs administers Stamp Duty Land Tax in England.
- Nil-rate thresholds: In Wales, buyers pay zero tax on main residential properties up to £225,000. In England, the standard nil-rate threshold is £125,000.
- First-time buyer relief: Wales does not offer first-time buyer relief. In England, eligible first-time buyers pay zero tax on the first £300,000 of a property purchase.
- Additional property surcharges: England applies a flat 5% surcharge across all standard tax bands for second homes and buy-to-let properties. Wales uses a progressive tiered structure for higher rates, reaching 17% on the portion above £1,500,000.
- Filing deadlines: Buyers must file and pay Land Transaction Tax in Wales within 30 days of completion. In England, the deadline to file and pay Stamp Duty Land Tax is 14 days.
Andrew Boast FMAAT
CEO of SAM Conveyancing
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