Land Transaction Tax Rates in Wales have changed
The Senedd in Wales has increased the higher residential tax rate at which Land Transaction Tax (LTT) is levied by 1% as of 11th December 2024. The amount of LTT is determined by:
- when you bought the property
- whether it’s residential or not
- how much you paid for it
The ‘effective date’ for assessing the rate is usually the day the property purchase is completed.
When you buy a residential property and you already own one or more residential properties you may need to pay the higher residential rates. This change will impact landlords and investors who already own 1 or more properties and are planning to purchase more, plus buyers who are thinking about purchasing a second home. If you're replacing your main residence the higher rates may not apply. When:
- companies buy residential properties, they'll have to pay the residential higher rates
- trusts buy residential properties, they may have to pay the residential higher rates
If you are thinking about buying a property it is best to check the rate in advance of making an offer to purchase. If you are currently in the process of purchasing, we would advise that you check with your solicitor what the rate is in case it has changed.
The following higher residential rates in Wales will now apply to the portion of the price you pay in each band.
| Price threshold | LTT rate |
|---|---|
| The portion up to and including £180,000 | 5% |
| The portion over £180,000 up to and including £250,000 | 8.5% |
| The portion over £250,000 up to and including £400,000 | 10% |
| The portion over £400,000 up to and including £750,000 | 12.5% |
| The portion over £750,000 up to and including £1,500,000 | 15% |
| The portion over £1,500,000 | 17% |
Main residential tax rates in Wales
The standard rates are currently unchanged as of October 2022. When you buy a residential property (freehold or leasehold) the following rates will apply to the portion of the price you pay in each band.
| Price threshold | LTT rate |
|---|---|
| The portion up to and including £225,000 | 0% |
| The portion over £225,000 up to and including £400,000 | 6% |
| The portion over £400,000 up to and including £750,000 | 7.5% |
| The portion over £750,000 up to and including £1,500,000 | 10% |
| The portion over £1,500,000 | 12% |
For further information about how this change may affect you, get in touch with one of our team.
