What is Land Transaction Tax (LTT)?
The Welsh 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 employee 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.
Frequently Asked Questions
What does land transaction tax (ltt) mean?
The Welsh equivalent of stamp duty, charged on property and land purchases.
Why does land transaction tax (ltt) matter?
Understanding land transaction tax (ltt) helps you make informed financial decisions and ensure you pay the correct amount of tax. Getting it wrong could mean overpaying or underpaying HMRC, which may result in penalties or missed savings. Use our calculators to see how land transaction tax (ltt) applies to your personal situation.
Where can I find more information about land transaction tax (ltt)?
HMRC publishes official guidance on GOV.UK for all UK tax topics. For a quick overview, our glossary entries are written in plain English and updated each tax year. You can also use our free online calculators to model different scenarios and understand how changes to your income, deductions, or allowances affect your overall tax position.