Glossary
LTT: Land Transaction Tax
The tax on buying property in Wales, with higher rates for additional homes.
What it means
Land Transaction Tax replaced stamp duty in Wales. Buyers of additional homes pay the higher residential rates, which start at 5% from the first pound, rather than a surcharge on top. Main residence buyers pay nothing up to £225,000, so the gap between a home-mover and an investor is wide on typical Welsh prices.
Worked example
ExampleA £120,000 terrace in Wales bought as an additional property.
- Higher rate up to £180,000
- 5%
- LTT
- £120,000 × 5% = £6,000
The same as SDLT in England at this price, but the bands diverge above £180,000.
Information, not advice. Example figures are fictional and for illustration only.