As mentioned above, the tax you pay depends mainly on the value of the property you purchase and its intended purpose. For instance, the Land Transaction Tax you owe will differ if you buy a property for the first time and intend to live in it or use it for commercial or rental purposes.
The amount you need to pay depends on a few key factors:
- When you bought the property
- How much you paid for it
- Its intended use
Having come into effect in April 2018, there are no signs of the current Land Transaction Tax rates being altered any time soon. So, if you plan on purchasing a property in Wales in 2024, the following tax rates will apply to you.
Those buying a primary residence in Wales are not required to pay Land Transaction Tax if the property is worth less than £225,000. From this price up to £400,000, you must pay a 2% tax on the property’s value. After that, as property values rise from £400,000 to over £1.5 million, the tax rates increase to 6%, 7.5%, 10% and 12% respectively.
Take a look at the table below, which shows the Land Transaction Tax rates and bands for properties in Wales as of April 2018:
| Purchase Price | LTT Rate |
| Up to £225,000 | 0% |
| £225,001 to £400,000 | 6% |
| £400,001 to £750,000 | 7.50% |
| £750,001 to £1.5 million | 10% |
| Over £1.5 million | 12% |
Again, to work out exactly how much you are required to pay, you can use the Land Transaction Tax calculator on this page or visit the official Welsh government website to keep up to date with any changes.
Land Transaction Tax Reliefs
Unlike the Land and Buildings Transaction Tax in Scotland, there is no first-time buyer relief in Wales regarding the Land Transaction Tax.
However, there are specific reliefs for:
- Purchasing multiple dwellings
- Moving property around a group structure
- Charities buying property
Other reliefs are available, and you can find more information about these under ‘Reliefs’ on the Land Transaction Tax page of the official Welsh government website. But to keep things simple, the above reliefs are outlined briefly.
According to the official Welsh government website, if you purchase multiple dwellings in Wales from the same seller on the same date or in several linked transactions, you can apply for relief from the Land Transaction Tax. This includes the purchase of off-plan property where construction may not have commenced at the time of the transaction.
If a land transaction is entered between group companies, there may also be grounds for relief from Land Transaction Tax. If conditions are met, this relief allows groups to move property for commercial reasons without being subject to Land Transaction Tax.
Finally, charities or charitable trusts can qualify for Land Transaction Tax relief if they purchase an interest in land, subject to certain conditions. As mentioned above, other reliefs are available when it comes to Land Transaction Tax, so be sure to research to see if you qualify for any before making a purchase.
| Purchase Price | Additional Property Rate |
| Up to £180,000 | 4% |
| £180,001 to £250,000 | 7.50% |
| £250,001 - £400,000 | 9% |
| £400,001 - £750,000 | 11.50% |
| £750,001 - £1.5 million | 14% |
| Over £1.5 million | 16% |
