Answers · UK 2025/26
How much Land Transaction Tax is due on a £300,000 second home in Wales?
On a £300,000 second home or buy-to-let purchase in Wales for 2026/27, the higher residential LTT rates for additional properties give a total of £19,200, compared with £4,500 at standard main-residence rates.
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Wales applies higher Land Transaction Tax rates to additional residential properties, including second homes and buy-to-let purchases, using a separate set of bands from the standard main-residence rates. For a £300,000 purchase in 2026/27, the standard main-residence LTT would be: 0% on the first £225,000, then 6% on the remaining £75,000, giving £4,500. The higher rates for additional properties are instead: 5% on the first £180,000 (£9,000) and 8.5% on the remaining £120,000 (£10,200), giving a total of £19,200. This is £14,700 more than the standard main-residence rate on the identical purchase price, reflecting the significant additional property surcharge Wales applies to discourage second-home ownership, particularly in popular coastal and rural areas where second homes have been linked to local housing affordability pressures. Welsh councils also have separate powers to charge higher council tax premiums, sometimes up to 300% of the standard rate, on second homes and long-term empty properties, which is a distinct charge from LTT and can add substantially to the ongoing cost of owning a second home in Wales, on top of the higher purchase tax shown here.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.