What is Land Transaction Tax (LTT)?
Wales's equivalent of stamp duty, charged on property and land purchases.
Key Facts
- ✓ Applies in Wales only (replaced SDLT in 2018)
- ✓ Collected by Welsh Revenue Authority (WRA)
- ✓ First £225,000 is tax-free — highest nil-rate band in the UK
- ✓ Higher rates surcharge on additional properties
- ✓ Different rates and bands compared to SDLT and LBTT
Current Rates (2025/26)
- ▸ 0% on first £225,000
- ▸ 6% on £225,001-£400,000
- ▸ 7.5% on £400,001-£750,000
- ▸ 10% on £750,001-£1,500,000
- ▸ 12% above £1,500,000
Explanation
Land Transaction Tax (LTT) is the Welsh equivalent of Stamp Duty Land Tax (SDLT). It replaced SDLT in Wales from 1 April 2018 when the power to set property transaction taxes was devolved to the Welsh Parliament (Senedd Cymru). LTT is a progressive tax with its own rates and thresholds that differ from both SDLT (England) and LBTT (Scotland). For residential property, the first £225,000 is tax-free — a higher starting threshold than England. Rates then increase: 6% on £225,001 to £400,000, 7.5% on £400,001 to £750,000, 10% on £750,001 to £1.5 million, and 12% above that. A higher rates surcharge applies to additional properties. LTT is collected by the Welsh Revenue Authority (WRA).
Try the calculator: Use our free calculator to see how land transaction tax (ltt) affects your finances.
Stamp Duty Calculator →Other Glossary Terms
The system HMRC uses to collect income tax and National Insurance directly from employees' wages.
National InsuranceA UK tax on earnings and self-employed profits that funds the state pension, NHS, and benefits.
Personal AllowanceThe amount of income you can earn each year before paying income tax — currently £12,570.
Basic Rate (20%)The 20% income tax rate applied to taxable income between £12,571 and £50,270.
Higher Rate (40%)The 40% income tax rate applied to taxable income between £50,271 and £125,140.
Additional Rate (45%)The 45% income tax rate applied to taxable income above £125,140.