Land Transaction Tax in Wales: Rates, Higher Rates and Refunds (2026)
Land Transaction Tax in Wales: Rates, Higher Rates and Refunds (2026)
If you buy a home in Wales you do not pay Stamp Duty. Since April 2018 the tax has been Land Transaction Tax (LTT), set by the Welsh Government and collected by the Welsh Revenue Authority (WRA). The rates, the reliefs and the rules for second homes all differ from England, and in places the differences are worth thousands of pounds.
This guide explains how LTT fits into the Welsh buying process, what you will pay at typical prices, how the higher rates work if you already own a home, and how to get a refund if you buy before you sell.
Try it yourself: the LTT Calculator works out Land Transaction Tax at main or higher residential rates on any price, with a band-by-band breakdown and a comparison with England and Scotland.
How buying in Wales works, and where LTT fits
The legal process in Wales follows the same pattern as England: you make an offer through the estate agent, arrange a mortgage and survey, your solicitor or conveyancer carries out searches, and the deal becomes binding at exchange of contracts. The purchase then completes, usually a week or more later, when the money moves and you get the keys.
LTT is linked to completion. In most purchases completion is the effective date of the transaction, and the clock for filing and paying starts the day after it.
The 30-day deadline and the LTT return
The LTT return must be filed with the WRA, and the tax paid, within 30 days from the day after the effective date. The Welsh Government's technical guidance says these are calendar days, not working days. A return is needed even for many purchases where no tax is due.
In practice your solicitor files the return online and pays the tax from funds you provide, usually on the day of completion, and gives you the 12-digit Unique Transaction Reference Number (UTRN). Keep it: you will need it to claim any refund. You remain responsible for the accuracy of the return, so read the draft and check the buyer details and the box for higher rates. Late filing or payment brings penalties and interest.
LTT main residential rates for 2026/27
LTT is charged in slices. Each rate applies only to the part of the price in that band.
| Purchase price | Main residential rate |
|---|---|
| Up to £225,000 | 0% |
| £225,001 to £400,000 | 6% |
| £400,001 to £750,000 | 7.5% |
| £750,001 to £1,500,000 | 10% |
| Over £1,500,000 | 12% |
Worked examples at main rates
| Price | LTT | Effective rate |
|---|---|---|
| £200,000 | £0 | 0% |
| £250,000 | £1,500 | 0.6% |
| £300,000 | £4,500 | 1.5% |
| £400,000 | £10,500 | 2.6% |
| £500,000 | £18,000 | 3.6% |
How the £300,000 figure is made up: nothing on the first £225,000 and 6% on the remaining £75,000, which gives £4,500.
Because the first band jumps straight to 6%, the tax rises quickly above £225,000: every £1,000 over the threshold adds £60. If you are negotiating at around £230,000, a £5,000 price reduction saves you £300 of LTT as well.
Why there is no first-time buyer relief
Wales does not offer first-time buyer relief. First-time buyers pay the same main rates as everyone else. The trade-off is a higher nil-rate band for all buyers: £225,000, compared with £125,000 for standard buyers in England.
That helps at lower prices, but first-time buyers in England have a nil-rate band of £300,000:
| Price | Wales (any buyer) | England, first-time buyer | England, standard buyer |
|---|---|---|---|
| £225,000 | £0 | £0 | £2,000 |
| £300,000 | £4,500 | £0 | £5,000 |
| £400,000 | £10,500 | £5,000 | £10,000 |
So a first-time buyer paying £300,000 in Wales pays £4,500 that they would not pay in England. If you are buying with a Lifetime ISA, the rules are the same in Wales as elsewhere in the UK; our Lifetime ISA guide explains them.
Higher residential rates on additional dwellings
If you already own a home and buy another without replacing your main residence, you normally pay the higher residential rates. In Wales these are a separate rate table, not a flat surcharge on the main rates, and they start from the first pound.
| Purchase price | Higher residential rate |
|---|---|
| Up to £180,000 | 5% |
| £180,001 to £250,000 | 8.5% |
| £250,001 to £400,000 | 10% |
| £400,001 to £750,000 | 12.5% |
| £750,001 to £1,500,000 | 15% |
| Over £1,500,000 | 17% |
These rates apply to transactions with an effective date from 11 December 2024. The higher rates generally only apply to purchases of £40,000 or more, where the buyer already owns another residential property worth more than £40,000. Ownership anywhere in the world counts.
Worked examples at higher rates
| Price | Higher rates | Main rates | Extra cost of higher rates |
|---|---|---|---|
| £200,000 | £10,700 | £0 | £10,700 |
| £250,000 | £14,950 | £1,500 | £13,450 |
| £300,000 | £19,950 | £4,500 | £15,450 |
| £400,000 | £29,950 | £10,500 | £19,450 |
On a £200,000 buy-to-let, for example: 5% of £180,000 is £9,000, plus 8.5% of the remaining £20,000, £1,700, giving £10,700.
Buying before you sell: the 3-year refund
The higher rates catch many people who are simply moving home. If you complete on a new main home before your old one has sold, you own two homes at the end of the day, so the higher rates normally apply.
You can claim a refund if you sell your previous main residence within 3 years of buying the new one. The refund is the difference between the higher rates you paid and the main rates.
Example. You buy a £300,000 home in Cardiff while your current house is still for sale. At completion you pay £19,950 at higher rates. Fourteen months later your old home sells. You can claim back £15,450, leaving you with the £4,500 main-rate bill.
To claim, use the WRA's online refund form. Have ready:
- the UTRN from your original return and the effective date of the purchase;
- the address and postcode of the home you sold;
- details of every buyer;
- evidence of the sale, such as a signed and dated transfer deed or contract for a sale in England or Wales, or a completion statement for property elsewhere; and
- your bank details.
The Welsh Government says claims usually take 15 to 20 working days. The window is applied strictly: a 2025 tribunal decision upheld the WRA's refusal of a refund where the old home was sold after the 3 years had ended. A longer period may apply in limited situations described in the WRA's technical guidance, but do not rely on it.
Budget for the cash. In this example you need the extra £15,450 at completion and wait until the sale to get it back.
Mixed-use and non-residential property
If a purchase includes both residential and non-residential elements, such as a shop with a flat above or a farm with a farmhouse, it is normally taxed at non-residential rates:
| Purchase price | Non-residential rate |
|---|---|
| Up to £225,000 | 0% |
| £225,001 to £250,000 | 1% |
| £250,001 to £1,000,000 | 5% |
| Over £1,000,000 | 6% |
A £300,000 mixed-use property would pay £2,750: 1% on £25,000 plus 5% on £50,000. The higher residential rates do not apply to non-residential rates, so the classification matters. Take specialist advice if the position is not clear-cut.
How Wales compares with England and Scotland
| Purchase | Wales (LTT) | England (SDLT) | Scotland (LBTT) |
|---|---|---|---|
| £250,000, standard buyer | £1,500 | £2,500 | £2,100 |
| £300,000, standard buyer | £4,500 | £5,000 | £4,600 |
| £300,000, first-time buyer | £4,500 | £0 | £4,000 |
| £300,000, additional property | £19,950 | £20,000 | £28,600 |
Wales is cheaper than England for standard buyers up to £350,000, where the two meet, more expensive for first-time buyers, and roughly level with England on second homes at this price. Scotland's 8% Additional Dwelling Supplement makes it the most expensive of the three for additional properties; see our LBTT guide.
Frequently asked questions
Do first-time buyers pay LTT? Yes, at the main rates, but nothing on the first £225,000. On a £300,000 home that is £4,500.
Do I pay higher rates if I inherited a share of a house? Possibly. Any interest in another residential property worth more than £40,000 can count. Ask your solicitor before you exchange.
Who files the LTT return? Your solicitor or conveyancer normally files it and pays the tax, within 30 days from the day after completion. You stay responsible for it.
Is there a deadline for the refund claim? The key condition is that the previous main residence is sold within 3 years of the new purchase. Claim promptly once the sale completes.
The bottom line
On a £300,000 home in Wales, LTT is £4,500 for any buyer, with no first-time buyer relief. If you own another home, higher rates take the bill to £19,950, and if that is because you bought before selling, you can reclaim £15,450 once your old home sells within 3 years. Keep your UTRN, plan the cash, and watch the deadlines.
Run any price through the LTT Calculator.
Related calculators and guides
- LTT Calculator, Land Transaction Tax for Welsh purchases
- Stamp Duty Calculator, SDLT in England and Northern Ireland
- LBTT Calculator, Scotland's LBTT and ADS
- Mortgage Calculator, monthly repayments on your new home
- Buy-to-Let Calculator, returns after the higher rates
- Buying a home in Scotland: LBTT explained
This article is for general guidance only and is not personalised tax or legal advice. Tax rules are complex and your circumstances may differ. For advice tailored to your situation, speak to a solicitor or qualified tax adviser. Rates are those in force for 2026/27, set by the Welsh Government and sourced from gov.wales, with English comparisons from gov.uk.
Sources
Rates and rules in this article are taken from the official pages below. Figures were checked against these sources at the last review date shown above; always confirm against the source before acting.
- Welsh Government: Land Transaction Tax rates and bands
- Welsh Government: Claim a refund of Land Transaction Tax higher rates
- Welsh Government: Pay Land Transaction Tax
- Welsh Government: LTT returns and payments technical guidance
- GOV.UK: Stamp Duty Land Tax residential property rates
- Revenue Scotland: Land and Buildings Transaction Tax
About the author
Alexandre Bernier, LLM (UK), CFP®, CIM®, PFP®. Financial planner with 18 years in banking and wealth management, holding a UK master of laws and the Canadian CFP®, CIM® and PFP® designations. Writes and reviews every calculator and article on FinanceToolz.
Rates and thresholds in this article are taken from HMRC and GOV.UK. See our editorial policy for how content is sourced, reviewed and corrected. This is general information, not regulated financial advice.