Land Transaction Tax Calculator

Find out how much Land Transaction Tax (LTT) you will have to pay for your property purchase, with our 2024 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).

How is Land Transaction Tax calculated?

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

As from 10 October 2022, LTT rates are as follows:

Land Transaction Tax bracketLTT % rate
Amount up to and including £225,0000%
The amount from £225,001 - £400,0006%
The amount from next £400,001 - £750,0007.5%
The amount from £750,001 - £1.5m10%
The amount over £1.5m12%

See example:

If you purchase a residential property in Wales for £600,000 you would pay £25,500 in Land Transaction Tax, calculated as follows:

  • 0% on the first £225,000 (£0)
  • 6% on the next £175,000 (£10,500)
  • 7.5% on the next £200,000 (£15,000)

See previous LTT rates (pre 10 October 2022)

Land Transaction Tax bracketLTT % rate
Up to £180,0000%
The next £180,001 - £250,0003.5%
The next £250,001 - £400,0005%
The next £400,001 - £750,0007.5%
The next £750,001 - £1.5m10%
The amount over £1.5m12%

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 LTT relief scheme available to first time buyers in Wales.

Higher Rate Land Transaction Tax on second or additional properties

If you buy a second residential property (or any additional residential properties) for £40,000 or more, 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.

The higher residential rates are as follows:

Land Transaction Tax bracketLTT % rate
Up to £180,0004%
The next £180,001 - £250,0007.5%
The next £250,001 - £400,0009%
The next £400,001 - £750,00011.5%
The next £750,001 - £1.5m14%
The amount over £1.5m16%

See example:

If you purchase a second or additional residential property in Wales for £600,000 you would pay £48,950 in Land Transaction Tax, calculated as follows:

  • 4% on the first £180,000 (£7,200)
  • 7.5% on the next £70,000 (£5,250)
  • 9% on the next £150,000 (£13,500)
  • 11.5% on the next £200,000 (£23,000)

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 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).

 

 

Article by Completely Moved authors

The Completely Moved team have years of experience helping home buyers, sellers and owners, answering questions and providing property advice.

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