Welsh – Land Transaction Tax
Welsh – Land Transaction Tax.
What Is Land Transaction Tax?
Land Transaction Tax (LTT)
If you are buying a property in Wales you will pay a reduced rate of Land Transaction Tax (LTT) until 30 June 2021. On your main home, you will pay no LTT on purchases below £250,000. If you’re buying an additional property, you will pay the higher residential rates for each band.
You must submit a Land Transaction Tax (LTT) return and pay what you owe to the Welsh Revenue Authority within 30 days of the day after completion (or effective date of the transaction).
If you do not submit a return, the Welsh Revenue Authority might charge penalties and interest.
Land Transaction Tax Rates
There are several rate bands for Land Transaction Tax (LTT) which are calculated on the portion of the property purchase price falling within each band.
The rate of Land Transaction Tax for a main and only residence is:
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|---|---|---|---|---|---|
| £0 | £180,000 | 0% | |||
| £180,001 | £250,000 | 3.5% | |||
| £250,001 | £400,000 | 5% | |||
| £400,001 | £750,000 | 7.5% | |||
| £750,0001 | £1,500,000 | 10% | |||
| Over £1,500,000 | 12% |
Land Transaction Tax On Second Homes.
Buyers of additional residential properties, such as second homes and buy-to-let properties may have to pay higher residential rates of Land Transaction Tax (LTT) on properties costing more than £40,000.
You must submit a Land Transaction Tax (LTT) return and pay what you owe to the Welsh Revenue Authority within 30 days of the day after completion (or effective date of the transaction).
If you do not submit a return, the Welsh Revenue Authority might charge penalties and interest.
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|---|---|---|---|---|---|
| £0 | £180,000 | 4%** | |||
| £180,001 | £250,000 | 7.5% | |||
| £250,001 | £400,000 | 9% | |||
| £400,001 | £750,000 | 11.5% | |||
| £750,001 | £1,500,000 | 14% | |||
| Over £1,500,000 | 16% |
Non Residential And Mixed Use Land.
There are also separate rules for what is termed ‘non-residential and mixed use land’, which includes commercial property such as retail units and offices, land used for agriculture and forestry, any non-residential land or six or more residential units that are bought in one transaction.
You pay SDLT on increasing portions of the property price (or ‘consideration’) when you pay: £150,000 or more for non-residential or mixed use land or property.
- The purchase of multiple dwellings
- A home bought by a building company
- An employee’s home bought by his or her employer
- A property bought by a local authority as a compulsory purchase
- The transfer of a property from one company to another
- Charities, right-to-buy or registered social landlords.