Published by Natalie on 10th February, 2018

The new Land Transaction Tax (LTT) will be introduced in Wales on Sunday 1 April 2018.

Land transaction tax (LTT) will replace stamp duty land tax, which is currently applied in England, Northern Ireland and Wales. Under the new system, the starting threshold for paying property tax will be £180,000 – compared with £125,000 at present.

All buyers of residential properties costing up to £400,000 will pay the same or less tax than they currently do, with the average buyer paying almost £500 less tax than they do under stamp duty land tax.

However, buyers looking for homes on the upper band rates between £400,000 and £925,000 will pay more. For example, a buyer purchasing a property in Wales for £400,000 would currently pay 5% stamp duty, but this will rise to 7.5% under the new rules. The additional tax for buying a second property will remain the same – at 3% on top of each band.   

The new land transaction tax rates in Wales from April 2018 are:

Price threshold                         Main residential rates

£0 - £180,000                                0%

£180,001 - £250,000                      3.5%

£250,001 - £400,000                      5%

£400,001 - £750,000                      7.5%

£750,001 - £1.5 million                   10%

Above £1.5 million                          12%


Further information is available here