Land Transaction Tax

Land Transaction Tax (LTT) is payable by the purchaser in a land transaction which occurs in Wales. This factsheet considers the key principles and requirements.

Call 01707 244722 or email enquiries@click4accounts.com

Land Transaction Tax is payable by the purchaser in a land transaction which occurs in Wales. At Click 4 Accounts, we can provide guidance on Land Transaction Tax in the Welwyn Garden City area.

Land Transaction Tax (LTT) is payable by the purchaser of property in Wales.

Who pays the tax?

LTT is payable by the purchaser of residential or non-residential property in a land transaction occurring in Wales. Stamp Duty Land Tax (SDLT) is payable on land transactions in England and Northern Ireland and Land and Buildings Transaction Tax (LBTT) on land transactions in Scotland.

What is a land transaction?

A transaction will trigger liability to LTT if it involves the acquisition of an interest in land. This will include a simple conveyance of land, such as buying a house, creating a lease or assigning a lease.

LTT is operated by the Welsh Revenue Authority (WRA), and individuals who are liable to the tax must complete and submit an LTT return (see later).

When is the tax payable?

Individuals must send an LTT return and pay the tax due to the WRA within 30 days of the day after completion (or other effective date of the transaction). Penalties and interest may be charged if you fail to file your LTT return or pay the necessary tax within the 30 days after the day of completion.

In some circumstances, buyers are not required to send a LTT return or pay LTT. These include instances where:

  • no money has exchanged hands
  • a property is left to you and you are not required to make a payment for the transfer of the property
  • property ownership is transferred to you as a result of a divorce or the dissolution of a civil partnership
  • freehold property has been purchased for less than £40,000
  • a new or assigned lease of seven years or more is purchased, and the premium is less than £40,000 and the annual rent is less than £1,000
  • a new or assigned lease of less than seven years is purchased, and the amount you pay is less than the residential or non-residential LTT zero rate threshold.

What if my property straddles the England-Wales border?

For cross-border cases, a home buyer will only be required to pay SDLT on the English part of the transaction and LTT to the WRA for the Welsh part of the transaction.

LTT rates

These are shown in the table below:

Residential property (£) Band % Rate
0 - 180,000 0
180,001 - 250,000 3.5
250,001 - 400,000 5
400,001 - 750,000 7.5
750,001 - 1,500,000 10
1,500,000 and above 12
Non-residential (£) Band % Rate
0 - 150,000 0
150,000 - 250,000 1
250,001 - 1,000,000 5
Over 1,000,000 6

First-time buyers

Unlike SDLT and LBTT, LTT does not provide any relief for first-time homebuyers in Wales. However, LTT is payable from a higher threshold than SDLT and LBTT, and the Welsh government anticipates that around 80% of first-time homebuyers will pay no tax.

How we can help

If you are in the Welwyn Garden City area please do contact us for guidance on Land Transaction Tax.

Home | Contact us | Site map | Accessibility | Disclaimer | Help |


About our team

"Sandra Jones FMAAT is passionate about helping small businesses succeed. She believes that by showing them how to really understand their financials, they can go on to grow and flourish."

Learn more

Contact Details

Please call: 01707 244722

Registered office
Click 4 Accounts Limited, 41 Poppyfields, Welwyn Garden City, Hertfordshire AL7 2HJ

© 2019 Click 4 Accounts Limited. All rights reserved. powered by totalSOLUTION
Click 4 Accounts Ltd is a limited company registered in England and Wales Company Registration No 08328752.

Sandra Jones is licensed and regulated by AAT under license number 8880. AAT is recognised by HM Treasury to supervise compliance with the Money Laundering Regulations and Click 4 Accounts Ltd is supervised by AAT in this respect. We use cookies on this website, you can find more information about cookies here.