What are the Welsh LTT higher residential rates on a second home in 2026/27?

Full answer

Land Transaction Tax (LTT) replaced Stamp Duty in Wales and is collected by the Welsh Revenue Authority. When you buy an additional residential property — a second home, holiday home or buy-to-let — and you already own another dwelling, you pay the higher residential rates of LTT instead of the standard main rates. Crucially, Wales does not bolt a separate percentage surcharge onto the main rates the way England adds to SDLT or Scotland adds its 8% Additional Dwelling Supplement on top of LBTT. Instead, Wales sets an entirely separate, higher set of band rates that apply across the whole purchase. LTT is charged on a slice (progressive) basis: each portion of the price falling within a band is taxed only at that band's rate, then the slices are added together to give your total bill. There is no first-time buyer relief in Wales, so first-time buyers pay the same main rates as everyone else; the higher rates apply specifically to additional dwellings. Because the exact higher-rate band percentages and thresholds are set by the Welsh Government and can be revised, you should confirm the current figures on the Welsh Revenue Authority website before completing, and use an LTT calculator that is updated for 2026/27 to model the slice-by-slice charge on your purchase price. As a regional comparison: in England and Northern Ireland a second home pays standard SDLT plus an additional-property surcharge on each band; in Scotland you pay LBTT plus the 8% ADS on the full price where it applies; and in Wales the higher LTT rates do the equivalent job through a distinct rate table. If the property later becomes your only home, you may be able to reclaim the extra tax in some circumstances, so keep your completion paperwork.

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