LTT Calculator Wales 2025

When buying an additional residential property in Wales (a second home, buy-to-let, or holiday let) while already owning residential property, the higher rates apply. The higher rates add 4% to all LTT bands, applying to the entire purchase price on each band.

Key insight: Wales LTT is the cheapest option for properties under approximately £235,000, where the high nil-rate threshold of £225,000 (vs England's £125,000) saves significantly. However, once the 6% rate kicks in at £225,001, Wales quickly becomes more expensive than England. At £400,000, Wales costs £500 more than England. At £500,000, Wales costs £3,000 more. The crossover point is around £235,000 - below which Wales is cheapest, above which England is typically more competitive for residential purchases.

What is Land Transaction Tax (LTT) in Wales?

Land Transaction Tax (LTT) is the Welsh equivalent of England's Stamp Duty Land Tax, replacing stamp duty in Wales on 1 April 2018. LTT applies to residential and non-residential property purchases in Wales. The tax is administered by the Welsh Revenue Authority (WRA), and buyers have 30 days from the effective date (usually completion) to file an LTT return and pay any tax due. Wales uniquely does not offer a separate first-time buyer relief - all residential buyers share the same nil rate threshold of £225,000.

What are the Wales LTT rates for 2025/26?

Residential LTT rates 2025/26: 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; 12% above £1,500,000. For additional dwellings, a 4% surcharge is added to every band (making effective rates 4%, 10%, 11.5%, 14%, 16%). Non-residential rates: 0% up to £225,000; 1% on £225,001 to £250,000; 5% on £250,001 to £1,000,000; 6% above £1,000,000.

How much LTT do I pay on a £300,000 property in Wales?

For a standard residential purchase of £300,000 in Wales (2025/26): The first £225,000 is taxed at 0% = £0. The portion from £225,001 to £300,000 (£75,000) is taxed at 6% = £4,500. Total LTT = £4,500. There is no first-time buyer relief in Wales, so this applies equally to first-time buyers and home movers. For comparison, England SDLT on the same property costs £5,000. If this were an additional dwelling, you would pay 4% on the full £300,000 (£12,000) plus 6% on the £75,000 above £225,000 (£4,500), totalling £16,500.

Is LTT higher or lower than SDLT in England?

LTT is generally lower than SDLT for properties below approximately £235,000, because Wales's nil rate threshold (£225,000) is much higher than England's (£125,000). However, above £235,000, Wales quickly becomes more expensive. At £300,000, Wales (£4,500) is cheaper than England (£5,000). At £400,000, Wales (£10,500) is more expensive than England (£10,000). The difference grows significantly at higher prices due to Wales's higher rate bands. For properties in the £400,000-£750,000 range, England SDLT is typically several thousand pounds cheaper than Wales LTT.

Does Wales have first-time buyer LTT relief?

No, Wales does not have a separate first-time buyer LTT relief. Unlike England (nil rate up to £300,000 for FTBs) and Scotland (nil rate up to £175,000 for FTBs), Wales applies the same standard rate table to all residential buyers. The nil rate threshold of £225,000 benefits all buyers equally. A first-time buyer purchasing a £350,000 property in Wales pays the same £7,500 LTT as a home mover buying the same property. The Welsh Government has considered introducing FTB relief but has not done so as of 2025/26.

What is the LTT higher rate for additional dwellings in Wales?

Wales applies a 4% higher rate surcharge on all LTT bands for additional residential dwellings - second homes, buy-to-let properties, and holiday lets. The higher rates are: 4% on the first £225,000; 10% on £225,001 to £400,000; 11.5% on £400,001 to £750,000; 14% on £750,001 to £1,500,000; 16% above £1,500,000. The WRA may allow a refund of the higher rate if you sell your main home within 36 months. Buyers must notify the WRA of additional dwelling status on their LTT return.

When do I pay LTT and who administers it?

LTT must be filed and paid within 30 days of the effective date of the transaction (usually the completion date). The Welsh Revenue Authority (WRA) administers LTT - their helpline is 03000 254 000. Your solicitor will typically submit the LTT return online via the WRA portal. An LTT return must be submitted even if no tax is due. Late filing penalties start at £100 for one day late, rising to £1,000 after 3 months, plus interest on any unpaid tax. The WRA has powers to investigate and can raise assessments for up to 4 years (or 20 years in cases of fraud).

How does LTT apply to cross-border properties straddling the England-Wales border?

Cross-border properties are those where the land physically straddles the England-Wales border. For LTT purposes, the applicable tax depends on where the greater part of the property is located by area or by value. If the majority of the property lies in Wales, LTT applies to the entire transaction at Welsh rates. If the majority lies in England, SDLT applies at English rates. The WRA and HMRC have issued joint guidance on cross-border transactions. Properties with genuinely ambiguous location should be assessed with professional legal advice, as incorrectly filing under the wrong tax regime can result in penalties from both authorities.