Land Transaction Tax vs stamp duty: what Wales charges instead
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.
LTT: the rates and bands that apply today
LTT is set by the Welsh Revenue Authority and applies to the portion of the price that falls in each band — not the whole price at one rate.
Main residential rates (in force since 10 October 2022, unchanged for 2026/27 per the Welsh Government's draft budget):
| 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 whether you're a first-time buyer, a mover, or buying alone or jointly — Wales makes no distinction. Checked against gov.wales, July 2026.
Worked examples at typical Cardiff price points
| 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 |
Worth sitting with: at £220,000 — close to a typical Cardiff flat or starter terrace — you pay nothing at all. At £450,000, closer to a family semi in areas like Whitchurch, the bill runs into five figures. The tax is genuinely progressive, so where your purchase price sits relative to 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 single biggest structural difference from England. In England, first-time buyers get 0% up to £300,000 and 5% on £300,001–£500,000 (with no relief at all above £500,000). Wales has no equivalent — a first-time buyer and a seasoned mover pay identical LTT on identical prices.
That makes the England-vs-Wales comparison price-dependent rather than a simple "Wales is worse" story:
| Price | Wales LTT (everyone) | England SDLT (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 Welsh buyer — first-time or not — pays nothing, same as an English first-time buyer. Above that, the gap opens up fast, because the English first-time buyer keeps getting relief that a Welsh first-time buyer never had in the first place. If you're moving from England to Cardiff, or comparing offers either side of the border, this is the number that catches people out — see our first-time buyer walkthrough for how it plays into deposit and affordability planning.
For context, movers in England (no relief) pay standard SDLT: 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 a residential property anywhere in the world worth £40,000 or more, LTT's higher residential rates usually apply instead of the main rates — whether you're buying a second home, a holiday let or a buy-to-let, and regardless of whether you're an individual, a company or (in some cases) a trust:
| 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 exchanged on or after 11 December 2024. On a £260,000 second home, that works out as £9,000 + £5,950 + £1,000 = £15,950 total — roughly £13,850 more than the main residential rate (£2,100) would charge on the same price. If you're replacing your only home, the higher rates generally don't apply — but timing matters if you complete on the new purchase before selling the old one. Checked against gov.wales, July 2026.
Buying jointly, or moving from England
A few situations come up often enough to flag directly:
- Joint buyers. LTT is assessed on the whole property, not per buyer, so it makes no difference to the tax bill whether one or two names are on the deeds — what matters is whether either buyer already owns another property, which can trigger the higher rates even if the other buyer is a genuine first-time buyer.
- Moving from England to Wales. Because the tax systems are entirely separate, any stamp duty relief, exemption or holiday you may be used to from an English purchase simply doesn't transfer — budget for LTT on Welsh rates from scratch, and don't assume your previous purchase experience tells you what to expect here.
- Selling in England while buying in Wales (or vice versa). The higher-rates test looks at what you own at the point of completion, not where — if your previous home hasn't sold yet when your Welsh purchase completes, you may temporarily be liable for LTT's higher rates even though you're not "really" buying a second home, with a refund available once you sell within the usual window. Confirm the current refund window and conditions with your conveyancer.
Who pays LTT, and when
LTT is due within 30 days of the "effective date" — normally the day the purchase completes. In practice your solicitor or conveyancer calculates and files the LTT return and payment as part of completion, the same way SDLT is handled in England — you don't deal with the Welsh Revenue Authority directly in most residential purchases. Budget for it as a completion-day cost alongside your deposit, not something to find money for afterwards.
FAQ
Do first-time buyers get any LTT discount at all in Wales?
No — there is currently no first-time-buyer relief, exemption or reduced rate for LTT in Wales. Everyone pays the same main residential rates regardless of buying history. This is confirmed by the absence of any such relief in the Welsh Revenue Authority's published rate tables.
Is LTT higher or lower than stamp duty overall?
It depends entirely on the price and whether you're a first-time buyer. Wales's higher standard nil-rate band (£225,000 vs England's £125,000) helps at lower prices; the lack of first-time-buyer relief hurts at higher prices. There's no single answer that applies to every purchase — run the numbers for your specific price.
Do I pay LTT on a new-build home the same way as an existing one?
Yes — LTT applies to the purchase price the same way regardless of whether the home is new-build or existing. New-build purchases can bring other considerations (builder incentives affecting the price a lender treats as the "true" purchase price, for instance) — see our new-build in Cardiff guide for how that works.
The practical takeaway
Don't assume "Wales has a higher nil-rate band" automatically means a cheaper move. Run the actual number for your purchase price using the tables above (or gov.wales's own calculator), especially if you're a first-time buyer comparing a Cardiff purchase against an equivalent one across the border — the lack of relief is the detail that most cross-border comparisons miss.
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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 information, not financial or tax advice.