Stamp Duty in Wales: Land Transaction Tax (LTT)
Wales replaced UK stamp duty with Land Transaction Tax in 2018. Here's how LTT works and whether you can reclaim an overpayment.
What is Land Transaction Tax?
Land Transaction Tax (LTT) replaced UK Stamp Duty Land Tax in Wales on 1 April 2018. It is administered by the Welsh Revenue Authority (WRA) and applies to residential and non-residential property purchases in Wales.
Like SDLT, it uses a progressive banding structure, but with Welsh-specific rates and thresholds set by the Senedd. Each band is taxed at its own rate — you only pay the higher rate on the portion of the price within that band.
LTT Residential Rates (2024/25)
| Band | Rate |
|---|---|
| Up to £225,000 | 0% |
| £225,001 – £400,000 | 6% |
| £400,001 – £750,000 | 7.5% |
| £750,001 – £1,500,000 | 10% |
| Over £1,500,000 | 12% |
Higher Rates for Additional Dwellings: An extra 4% applies on top of standard rates for second homes and buy-to-let purchases in Wales.
First-time buyer relief: Wales removed first-time buyer relief in 2022. All buyers pay the same LTT rates regardless of whether they are first-time buyers.
Can You Claim an LTT Refund in Wales?
Yes — the most common scenario is the Higher Rates refund. If you paid the 4% higher rate surcharge because you owned another property at completion, but sold your previous main home within 3 years of the new purchase, you can claim the higher rate element back from the Welsh Revenue Authority. The claim must be made within 3 months of selling the previous property.
Other refund grounds — such as uninhabitable property or chattel apportionment — exist in Wales too, though they are administered by the WRA rather than HMRC. The principles are broadly similar to those for second home stamp duty refunds in England.
Note: StampDutyBack currently supports England and Northern Ireland SDLT claims. For Welsh LTT matters, we recommend contacting a Welsh solicitor or tax adviser.
How LTT Differs from Stamp Duty (SDLT)
Who administers it
HMRC
Welsh Revenue Authority (WRA)
Nil-rate threshold
£250,000
£225,000
Surcharge for second homes
5%
4%
Frequently Asked Questions
Do I pay stamp duty if I buy a house in Wales?
No — Wales uses Land Transaction Tax (LTT), administered by the Welsh Revenue Authority. UK Stamp Duty Land Tax does not apply to Welsh property purchases.
What is the LTT nil-rate threshold in Wales?
£225,000 for standard residential purchases. You pay no LTT on the first £225,000 of the purchase price.
Can I claim the higher rate LTT surcharge back?
Yes, if you sold your previous main home within 3 years, you can claim a refund from the WRA within 3 months of that sale.
Does StampDutyBack handle Welsh LTT claims?
StampDutyBack's specialist network covers England and Northern Ireland SDLT. For LTT in Wales, a Welsh tax solicitor is recommended.
Buying in England or Northern Ireland?
If your property is in England or NI, our specialists can help you identify and reclaim overpaid stamp duty.