Buying a Property

Land Transaction Tax in Wales — LTT Rates, Thresholds and Higher Rates 2026

Wales operates its own property transaction tax — LTT — administered by the Welsh Revenue Authority. This guide covers all current LTT bands, the higher rates for additional dwellings, and key differences from England's SDLT.

Published: 19 Mar 2026 · Updated: 19 Mar 2026 · 5 min read

Land Transaction Tax — Wales's Property Tax

When Wales gained tax powers in April 2018, Stamp Duty Land Tax was replaced by Land Transaction Tax (LTT) for property purchases in Wales. LTT is administered by the Welsh Revenue Authority (WRA) and has its own rates and thresholds, which differ from both SDLT in England and LBTT in Scotland.

If you are buying in Wales, SDLT does not apply. LTT does.

LTT Residential Rates 2026

Purchase price portion	Rate
£0 – £225,000	0%
£225,001 – £400,000	6%
£400,001 – £750,000	7.5%
£750,001 – £1,500,000	10%
Above £1,500,000	12%

The Welsh nil-rate threshold of £225,000 is notably higher than England's £125,000, making Wales relatively favourable for buyers of lower to mid-value properties. However, the jump to 6% above £225,000 (versus England's 2% above £125,000) can make it more expensive for properties just above the threshold.

Worked Example — Standard Purchaser

A buyer purchasing a property in Cardiff for £350,000 pays:

£0 – £225,000 @ 0% = £0
£225,001 – £350,000 @ 6% = £7,500
**Total LTT: £7,500**

Compare this to SDLT for the same price in England: £7,500. The totals happen to be identical at this price point, though the mechanics differ significantly.

For a £500,000 purchase in Wales:

£0 – £225,000 @ 0% = £0
£225,001 – £400,000 @ 6% = £10,500
£400,001 – £500,000 @ 7.5% = £7,500
**Total LTT: £18,000**

The equivalent SDLT in England for £500,000 would be £12,500 — Wales is more expensive for higher-value properties.

No First-Time Buyer Relief in Wales

Unlike England and Scotland, Wales does not currently offer a specific first-time buyer relief for LTT. All residential buyers in Wales pay LTT at the same rates, regardless of whether they have previously owned property.

This is a material difference for first-time buyers weighing up purchasing in border areas: a first-time buyer purchasing a £350,000 property in England pays £2,500 in SDLT (with first-time buyer relief), whereas the same buyer purchasing across the border in Wales pays £7,500 in LTT.

Higher Rates for Additional Dwellings

Wales charges higher rates of LTT on purchases of additional residential properties. A surcharge of **4%** is added to the standard LTT rates at every band for buyers who will own more than one residential property after the transaction.

Purchase price portion	Standard rate	Higher rate
£0 – £225,000	0%	4%
£225,001 – £400,000	6%	10%
£400,001 – £750,000	7.5%	11.5%
£750,001 – £1,500,000	10%	14%
Above £1,500,000	12%	16%

The same 36-month replacement rule that applies in England also applies in Wales: if you complete on a new main home before selling the old one, you pay higher rates upfront and can reclaim the 4% surcharge once the previous main home is sold within 36 months.

Worked Example — Additional Dwelling in Wales

A buy-to-let investor purchasing a £275,000 property in Wales pays:

£0 – £225,000 @ 4% = £9,000
£225,001 – £275,000 @ 10% = £5,000
**Total LTT: £14,000**

Without the higher rates, the same property would cost £3,000 in LTT.

Filing LTT Returns

LTT returns must be submitted to the Welsh Revenue Authority within **30 days** of the effective date of the transaction. Your solicitor handles this as part of conveyancing. Returns are filed online via the WRA portal at www.wra.gov.wales.

Comparing LTT with SDLT

Wales's higher nil-rate threshold (£225,000 vs England's £125,000) benefits buyers of modestly priced property. Above £225,000, the steeper rate of 6% quickly erodes this advantage. For buyers considering properties in the £200,000–£300,000 range, LTT and SDLT produce similar totals; above that, SDLT in England is typically cheaper.

Use our Stamp Duty Calculator at Property Passport UK to calculate SDLT for equivalent English properties — a useful comparison if you are searching near the English-Welsh border.