Glossary · UK
What is Land Transaction Tax (LTT)?
Land Transaction Tax is the Welsh tax on buying property or land in Wales, replacing Stamp Duty since April 2018.
Full Definition
Land Transaction Tax (LTT) is the devolved tax payable when you buy or lease residential or non-residential property and land in Wales. Administered by the Welsh Revenue Authority, it replaced UK Stamp Duty Land Tax in Wales on 1 April 2018. Unlike England's SDLT and Scotland's LBTT, LTT offers no first-time buyer relief, so the same main residential rates and thresholds apply to all buyers. Tax is charged on a slice basis: each portion of the price within a band is taxed at that band's rate, with a nil-rate band covering the lowest-value purchases. Higher rates apply to additional residential properties such as buy-to-let homes and second homes, charged as a surcharge on top of the standard rates. You must file an LTT return and pay any tax due within 30 days of the transaction completing, usually handled by your solicitor or conveyancer. For comparison, buyers in England and Northern Ireland pay SDLT (0% to £125,000, then rising bands), while Scotland charges LBTT with an 8% Additional Dwelling Supplement. Rates and bands are set by the Welsh Government and reviewed periodically, so check current figures before budgeting.