Land Transaction Tax Calculator

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Find out how much Land Transaction Tax (LTT) will you have to pay on your home, with our 2022 Land Transaction Tax Calculator.

See also:

Calculate Stamp Duty on a residential property in England

What is Land Transaction Tax (LTT)?

Land Transaction Tax (LTT) is a tax payable to the Welsh Revenue Authority on property and land purchases.

In Scotland, you pay Land and Buildings Transaction Tax (LBTT), and in England you pay Stamp Duty Land Tax (SDLT).

Land Transaction Tax Calculator

How is Land Transaction Tax calculated?

LTT is calculated in increasing percentage brackets on the purchase price of the property:

Land Transaction Tax bracket SDLT % rate
Up to £180,000 0%
The next £180,001 - £250,000 3.5%
The next £250,001 - £400,000 5%
The next £400,001 - £750,000 7.5%
The next £750,001 - £1.5m 10%
The amount over £1.5m 12%

Example:

If you purchase a residential property in Wales for £600,000 you would pay £24,950 in Land Transaction Tax, calculated as follows:

  • 0% on the first £180,000 (£0)
  • 3.5% on the next £70,000 (£2,450)
  • 5% on the next £150,000 (£7,500)
  • 7.5% on the next £200,000 (£15,000)

Land Transaction Tax for first-time buyers

Eligible buyers in England can claim Stamp Duty Relief (pay no Stamp Duty) when buying their first property in England. There is currently no first-time buyer relief scheme available to first time buyers in Wales.

Land Transaction Tax on second or additional properties

If you buy a second residential property (or any additional residential properties) a higher residential rate will apply.

When buying a residential property through a company or trust, the higher residential rate will usually apply, even if no other residential properties are owned.

Higher residential rates are as follows:

Land Transaction Tax bracket SDLT % rate
Up to £180,000 3%
The next £180,001 - £250,000 6.5%
The next £250,001 - £400,000 8%
The next £400,001 - £750,000 10.5%
The next £750,001 - £1.5m 13%
The amount over £1.5m 15%

Example:

If you purchase a second or additional residential property in Wales for £600,000 you would pay £42,950 in Land Transaction Tax, calculated as follows:

  • 3% on the first £180,000 (£5,400)
  • 6.5% on the next £70,000 (£4,550)
  • 8% on the next £150,000 (£12,000)
  • 10.5% on the next £200,000 (£21,000)

When do I have to pay Land Transaction Tax?

Once you have completed your purchase, you have 30 days in which to pay any outstanding Land Transaction Tax. Your conveyancing solicitor will usually complete the Land Transaction Tax (LTT) return for you as well as organising the payment.

The amount of LTT will be charged as a disbursement and factored into the completion costs on completion of your purchase.

If you fail to pay what you owe, you could face a penalty and incur interest charges.

Other points to consider…

  • If you are purchasing a new build property, some developers may offer to pay your LTT for you as an incentive.
  • Non-residential properties and land attract different rates of Land Transaction Tax (See Gov.wales).

Your next step

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Chris Salmon, Director

Author:
Chris Salmon, Director