From 27th July 2020 the Land Transaction Tax LTT rates in Wales will change, the threshold is lifted from £180,000 to £250,000. This change will be held until 31st March 2021 and then extended to 30th June 2021. This has now ended.

The timing of the change ties up with further restrictions being removed from the housing market that currently prohibits the viewing of occupied residential properties. (Occupied properties can be viewed from 27th July).

Welsh Government say that with the main zero rate threshold being lifted, this will mean that 80 per cent of homebuyers will now not pay tax. It was previously at 60 per cent, with Wales being the only country in the UK that had a starting threshold higher than the average price of a home. The new threshold is £70,000 higher than their current starting threshold for residential property transactions and will mean that only around 20 per cent of those liable to the main LTT rates will pay any tax.

Anyone buying properties that cost more than £250,000 will make a saving of £2,450 over that which would previously have been payable.



 LTT 2nd Property
Up to £180,000 0% 4%
£180 to £250,000 0% (now £.5%) 3.5% + 4% = 7.5%

Above £250,000 to £400,000

5 per cent

5% + 4% = 9%

 Above £400,000 to £750,000

7.5 per cent

7.5% + 4% = 11.5%

 Above £750,000 to £1,500,000

10 per cent

10% + 4% = 14%

 Over £1,500,000

12 per cent

12% + 4% = 16%


These changes will not, however, apply to those buying property that is liable to the higher rates. The rates and thresholds for buyers of residential property as an investment or as a second home remain unchanged. Welsh Government Minister said "This targeted tax reduction will support taxpayers who are paying the main rates of land transaction tax (broadly, those buying their homes) and who may need additional support due to the pandemic"

This means that anyone buying a second residential property will pay an additional 3% 4% (from January 2021) on top of the above stated rates ( see second column above 'LTT 2nd Property')


The Welsh Government Statement is available here

updated 25th August 2021

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