Otherwise known as Welsh Stamp Duty – find out how much to pay for your residential property in Wales.
Additional property?
(Buy-to-let or second home)
We hope this helps plan for your new home in Wales.
No need to worry about the complicated maths to work out how much you might need to pay – just use our LTT calculator, it’s a lot easier!
If you do want to run through the rates yourself (or check our maths), they’re just below.
Nuts About Money tip: if you’re not sure how much you can borrow for a mortgage, or your repayments, check out our mortgage calculator.
Land Transaction Tax is what you’ll pay to the government when you buy a property in Wales – it’s commonly also known as Stamp Duty (technically Stamp Duty Land Tax), which it replaced in 2018.
Stamp Duty Land Tax is what the tax is called in England and Northern Ireland.
Nuts About Money tip: you can compare all the rates with our stamp duty calculator.
Land Transaction Tax is a percentage of the property value that you’re buying, and paid to the Welsh Revenue Authority (WRA).
Unfortunately, in Wales, there’s no discount for first time buyers (there is in England, Northern Ireland and Scotland), and if you’re buying a second home, or a home to rent out, you’ll pay a higher rate (both called an additional property). The rates are just below.
Here’s how much you’ll pay:
Unfortunately in Wales, there’s no discount for first time buyers. Although you won’t pay any tax on the property value below £225,000.
If you’re buying a new home for yourself in addition to your existing home, or buying a home to rent out, you’ll pay the ‘additional property’ rate, rather than the main rate. It’s often called the ‘higher rate’.
It will only apply if the property is worth more than £40,000.
If you’re moving to a new home to live in yourself, you won’t pay the higher rate, just the normal rate.
However, if you’re buying a new home, but haven’t sold your existing home yet, you’ll need to pay the higher rate first, and then when you sell your existing home, you can claim a refund for the difference.
You have up to 3 years to sell your previous home after buying your new home, to still get the refund. And you get the refund by completing a form with the Welsh Revenue Authority.
No, the rates are the same for residents and non-residents of the UK. Non-residents would only pay more if they were buying a home in England and Northern Ireland.
You need to pay LTT when you purchase your own property, and you have up to 30 days to pay.
Your solicitor or conveyancer (a property solicitor), will handle everything for you.
Edward Savage is a leading expert on money, with a background of 8 years working in financial services in London, has a business, accounting and finance degree, runs an investing community, and teaches people about money. He writes about all aspects of personal finance, including pensions, investing, mortgages and insurance.
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