Land Transaction Tax (LTT) is a charge you’ll pay if you buy a property or piece of land in Wales that costs over £225,000, or over £40,000 if it’s a second home.
If you are buying in other parts of the UK, there are different tax regulations, namely Stamp Duty (SDLT) in England and Northern Ireland and Land and Buildings Transaction Tax (LBTT) in Scotland.
You must pay LTT if you buy a property or land over a certain price threshold in Wales. The threshold is where the tax starts to apply. The current LTT threshold is:
- £225,000 for residential properties (if you do not own other property)
- £225,000 for non-residential land and property
Based on the LTT rates and bands set by the Welsh Government. There are different rules if you already own one or more residential properties, and you may need to pay the higher residential rates. However, if you’re replacing your main residence, the higher rates may not apply. You pay the tax when you:
- buy a freehold property
- buy a new or existing leasehold
- are transferred land or property in exchange for payment, for example, you take on a mortgage or buy a share in a house
LTT is a self-assessed tax. It’s the responsibility of the taxpayer to complete and submit an accurate tax return and pay any tax due.
More information from the Welsh Government Land Tax website.