Land Transaction Tax vs stamp duty: what Wales charges instead
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Want the number for your purchase? Use our stamp duty Wales calculator for the LTT on any price, with the England comparison side by side.
Quick answer: If you buy a home in Wales you pay Land Transaction Tax (LTT), not Stamp Duty Land Tax (SDLT) — they're separate, devolved taxes with different bands. Wales's tax-free threshold is higher than England's standard threshold (£225,000 versus £125,000), which helps at lower prices. But Wales has no first-time buyer relief at all — everyone pays the same LTT regardless of whether it's their first home — while England gives first-time buyers 0% up to £300,000. The result: Wales is often cheaper for movers at modest prices, but can work out more expensive than England for first-time buyers above roughly £225,000–£300,000. Rates checked against gov.wales and gov.uk in July 2026.
Land Transaction Tax rates today
Land Transaction Tax (LTT) is set by the Welsh Revenue Authority. Each rate applies only to the part of the price that falls in that band, not to the whole price.
Main rates for homes (in force since 10 October 2022, and unchanged for 2026/27):
Scroll sideways to see every column.
| Price band | LTT 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% |
These rates apply to everyone: first-time buyers, movers, and people buying alone or jointly. Checked against gov.wales, July 2026.
Worked examples for South Wales buyers
These examples use Cardiff prices as a guide:
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| Purchase price | How it's taxed | LTT due |
|---|---|---|
| £220,000 | Fully within the 0% band | £0 |
| £300,000 | 0% on £225,000 + 6% on £75,000 | £4,500 |
| £450,000 | 0% on £225,000 + 6% on £175,000 + 7.5% on £50,000 | £14,250 |
At £220,000, between Cardiff's typical flat (around £162,000) and typical terrace (around £262,000; ONS UK House Price Index, May 2026), you pay nothing. At £450,000, well above the typical Cardiff semi-detached price (around £325,000), the bill runs into five figures. Our areas and prices guide has Cardiff's figures area by area. Because the rate rises in steps, where your price sits against the £225,000 and £400,000 thresholds matters more than the headline rate.
Wales has no first-time buyer relief, and that changes the comparison
This is the biggest difference from England. In England, first-time buyers get relief (a lower tax bill): 0% up to £300,000 and 5% on £300,001 to £500,000, with no relief at all above £500,000. Wales has nothing like it: a first-time buyer and an experienced mover pay the same LTT on the same price.
So which country is cheaper depends on the price. It isn't a case of "Wales is worse":
Scroll sideways to see every column.
| Price | Wales LTT (everyone) | England stamp duty (first-time buyer relief) |
|---|---|---|
| £220,000 | £0 | £0 |
| £300,000 | £4,500 | £0 (exactly at the relief threshold) |
| £450,000 | £14,250 | £7,500 |
Below roughly £225,000, a buyer in Wales, first-time or not, pays nothing, just like a first-time buyer in England. Above that, the gap opens up fast, because the English first-time buyer keeps getting relief that a Welsh first-time buyer never had. This is what catches out people moving from England, or comparing homes either side of the border. Our first-time buyer walkthrough shows how it fits into planning your deposit and budget.
For comparison, movers in England (no relief) pay standard stamp duty: 0% to £125,000, 2% to £250,000, 5% to £925,000. Checked against gov.uk, July 2026.
Higher rates: second homes and buy-to-let
If you already own residential property (somewhere people live) anywhere in the world worth £40,000 or more, LTT's higher rates usually apply instead of the main rates. That's whether you're buying a second home, a holiday let or a buy-to-let (a home to rent out), and whether you're an individual, a company or (in some cases) a trust:
Scroll sideways to see every column.
| Price band | Higher LTT rate |
|---|---|
| Up to £180,000 | 5% |
| £180,001 – £250,000 | 8.5% |
| £250,001 – £400,000 | 10% |
| £400,001 – £750,000 | 12.5% |
| £750,001 – £1,500,000 | 15% |
| Over £1,500,000 | 17% |
These rates apply where contracts were exchanged (the purchase became legally binding) on or after 11 December 2024. On a £260,000 second home, that works out as £9,000 + £5,950 + £1,000 = £15,950 in total: roughly £13,850 more than the main rate (£2,100) on the same price. If you're replacing your only home, the higher rates generally don't apply, but timing matters if you complete (get the keys) on the new home before selling the old one. Checked against gov.wales, July 2026.
Buying jointly, or moving from England
A few situations come up often:
- Joint buyers. LTT is worked out on the whole property, not per buyer, so the bill is the same whether one or two names are on the deeds. What matters is whether either buyer already owns another property: if so, the higher rates can apply even if the other buyer is a first-time buyer.
- Moving from England to Wales. The two tax systems are completely separate, so any stamp duty relief, exemption or holiday you're used to from England doesn't carry over. Budget for LTT at Welsh rates from scratch.
- Selling in England while buying in Wales (or the other way round). The higher-rates test looks at what you own on the day you complete, not where it is. If your old home hasn't sold when your Welsh purchase completes, you may have to pay the higher rates for now, even though you're not "really" buying a second home. You can get a refund once you sell, within the usual time limit. Check the current time limit and conditions with your conveyancer (the legal professional who handles your purchase).
Who pays LTT, and when
LTT is due within 30 days of the "effective date", which is normally the day the purchase completes. In practice, your solicitor or conveyancer works it out and sends the tax form and payment as part of completion, as with stamp duty in England. In most home purchases you don't deal with the Welsh Revenue Authority yourself. Budget for it alongside your deposit as a completion-day cost, not something to find afterwards.
FAQ
Do first-time buyers get any LTT discount at all in Wales?
No. There's currently no first-time buyer relief, exemption or reduced rate for LTT in Wales (the Welsh Revenue Authority's published rate tables include none). Everyone pays the same main rates, whatever their buying history.
Is LTT higher or lower than stamp duty overall?
It depends on the price and whether you're a first-time buyer. Wales's higher tax-free band (£225,000, against England's standard £125,000) helps at lower prices; the lack of first-time buyer relief hurts at higher ones. Work it out for your price.
Do I pay LTT on a new-build home the same way as an existing one?
Yes. LTT applies to the purchase price in the same way, whether the home is new or not. New-builds can raise other issues, such as builder incentives changing the price a lender treats as the "true" purchase price. Our new-build in South Wales guide explains how that works.
The practical takeaway
Wales's higher tax-free band doesn't automatically mean a cheaper move. Work out the real figure for your price with the tables above (or gov.wales's own calculator), especially if you're a first-time buyer comparing homes either side of the border: the missing relief is what most comparisons miss.
Rates and bands checked directly against gov.wales and gov.uk in July 2026. LTT and SDLT rates, bands and reliefs are set by the Welsh and UK governments respectively and can change at future budgets — always confirm the current rates on gov.wales or gov.uk, or with your conveyancer, before exchanging contracts. This guide is general information, not a personal recommendation or tax advice.
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