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Land Transaction Tax

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Mark Drakeford, Cabinet Secretary for Finance
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From April 2018, Land Transaction Tax (LTT) will replace UK Stamp Duty Land Tax (SDLT) in Wales.

Like SDLT, LTT will be payable when you buy or lease a building or land over a certain price. It may affect house buyers and sellers and businesses including builders, property developers and agents involved in the transaction process (such as solicitors and conveyancers).

The legislation is broadly consistent with SDLT, preserving the underlying structure and mirroring key elements such as partnerships, trusts and reliefs, to provide stability and reassurance to businesses and the property market.

Changes have been made to:

  • simplify the tax and make it fairer
  • improve its efficiency and effectiveness
  • focus on Welsh needs and priorities.

The rates of tax

The tax rates and tax bands for Land Transaction Tax are available below.

The Welsh Revenue Authority (WRA) will be responsible for collecting Land Transaction Tax and a tax calculator is available on the WRA website.

Additional residential properties

Higher rates of Stamp Duty Land Tax on purchases of additional residential properties (including second homes) came into effect on 1 April 2016. These will continue in the new act.

Timetable

The bill received Royal Assent on 24 May 2017.

Information including all associated documentation is available at National Assembly for Wales (external link).

Document Download

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Factsheet (File size: 57KB)
Adobe PDF document
Summary of responses (File size: 357KB)
Adobe PDF document
Impact assessments (File size: 1.2MB)