LTT Calculator Wales 2025/26
Calculate Land Transaction Tax (LTT) on residential property purchases in Wales. Updated for the 2025/26 tax year including higher rates for additional properties.
How Land Transaction Tax Works in Wales
Land Transaction Tax (LTT) is the property transaction tax that applies to land and property purchases in Wales. It replaced Stamp Duty Land Tax (SDLT) for Welsh properties on 1 April 2018 and is administered by the Welsh Revenue Authority (WRA), the first Welsh tax body in over 800 years.
Like its counterparts in England (SDLT) and Scotland (LBTT), LTT is a progressive tax. Different portions of the purchase price are taxed at different rates, so you only pay the higher rate on the slice of the price within each band. This means the effective tax rate increases gradually with the property price.
An important distinction in Wales is that there is no first-time buyer relief. All buyers — whether purchasing their first property or their tenth — pay the same LTT rates. However, Wales compensates with a higher nil-rate threshold of £225,000, which means no LTT is payable on properties up to this value.
LTT Rates for 2025/26
The current LTT rates for residential property purchases in Wales are:
Standard Rates
| Purchase Price Band | LTT 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% |
Higher Rates (Additional Properties)
If you are purchasing an additional residential property (such as a second home, holiday home, or buy-to-let), a 5% surcharge applies on top of the standard rates on all bands. The higher rates are:
| Purchase Price Band | Higher Rate |
|---|---|
| Up to £225,000 | 5% |
| £225,001 to £400,000 | 11% |
| £400,001 to £750,000 | 12.5% |
| £750,001 to £1,500,000 | 15% |
| Over £1,500,000 | 17% |
LTT Compared to SDLT and LBTT
Each UK nation has its own property transaction tax with different rates and rules. Here is how they compare for a £300,000 property purchase by a home mover:
| Tax | Region | Tax on £300,000 |
|---|---|---|
| SDLT | England & NI | £5,000 |
| LBTT | Scotland | £4,600 |
| LTT | Wales | £4,500 |
For this price point, Wales is the cheapest due to its higher nil-rate band. However, at higher prices, the steeper LTT rates can make Welsh purchases more expensive than England. The crossover point depends on the specific price and buyer type.
Worked Examples
Example 1: Home Mover at £300,000
A home mover purchasing a £300,000 property in Wales:
- 0% on first £225,000: £0
- 6% on £225,001 to £300,000: £4,500
- Total LTT: £4,500
- Effective rate: 1.5%
- Total purchase cost: £304,500
Example 2: Additional Property at £300,000
A buyer purchasing a £300,000 additional property in Wales (5% surcharge on all bands):
- (0% + 5%) on first £225,000: £11,250
- (6% + 5%) on £225,001 to £300,000: £8,250
- Total LTT: £19,500
- Effective rate: 6.5%
- Total purchase cost: £319,500
Example 3: Home Mover at £500,000
A home mover purchasing a £500,000 property in Wales:
- 0% on first £225,000: £0
- 6% on £225,001 to £400,000: £10,500
- 7.5% on £400,001 to £500,000: £7,500
- Total LTT: £18,000
- Effective rate: 3.6%
- Total purchase cost: £518,000
Common Mistakes with LTT
1. Using English Stamp Duty Rates
SDLT does not apply to property purchases in Wales. If you are buying a property in Wales, you must use the LTT rates. The thresholds, rates, and rules are different. Using English rates will give an incorrect estimate, particularly for properties under £225,000 (where LTT is zero but SDLT may apply) or for properties over £225,000 (where LTT rates are generally higher per band).
2. Expecting First-Time Buyer Relief
Unlike England and Scotland, Wales has no first-time buyer relief. All buyers pay the same standard LTT rates. If you are a first-time buyer purchasing in Wales, do not expect a reduced rate. However, the higher nil-rate band of £225,000 means that first-time buyers purchasing at lower price points still pay no LTT.
3. Forgetting the Higher Rate Applies from £0
The higher rate (additional property surcharge) applies from the very first pound, not just above £225,000. On a £300,000 additional property, 5% applies to the entire first £225,000 (£11,250), which is a significant amount that buyers sometimes overlook.
4. Not Checking Which Tax Applies
The tax you pay depends on where the property is located, not where you live. If you live in England but buy a property in Wales, you pay LTT not SDLT. Similarly, if you live in Wales but buy in England, you pay SDLT. Always check the location of the property to determine which tax applies.