LTT on a £1,200,000 Property
LTT on a £1,200,000 property in Wales is £81,750 for standard buyers. Additional property buyers pay £129,750 (including the 5% surcharge).
Buying a £1,200,000 property in Wales? Your Land Transaction Tax (LTT) bill is £81,750 (effective rate: 6.81%). At over £1 million, this property attracts the highest stamp duty rates.
LTT band breakdown
| Band | Rate | Taxable | Tax |
|---|---|---|---|
| Up to £225,000 | 0% | £225,000 | £0 |
| £225,001 to £400,000 | 6% | £175,000 | £10,500 |
| £400,001 to £750,000 | 8% | £350,000 | £26,250 |
| £750,001 to £1,500,000 | 10% | £450,000 | £45,000 |
Buyer type comparison
| Buyer type | LTT | Effective rate |
|---|---|---|
| Standard | £81,750 | 6.81% |
| First-time buyer | £81,750 | 6.81% |
| Additional property | £129,750 | 10.81% |
How LTT is calculated
Land Transaction Tax (LTT) in Wales is a progressive tax — you only pay the higher rate on the portion of the property price within each band, not on the entire purchase price. This means the effective rate is always lower than the highest marginal rate that applies to your purchase. For a £1,200,000 property, your effective LTT rate is 6.81%. Additional property purchases attract a 5% surcharge on top of the standard rates, which is why second homes and buy-to-let investments cost significantly more in LTT. Non-UK residents also pay an additional 2% surcharge on top of all other rates.
Total cost of buying a £1,200,000 property
With a 10% deposit of £120,000 and LTT of £81,750, you need £201,750 upfront (excluding solicitor fees and surveys).
LTT on nearby property prices
| Property price | LTT | Effective rate |
|---|---|---|
| £1,150,000 | £76,750 | 6.67% |
| £1,175,000 | £79,250 | 6.74% |
| £1,225,000 | £84,250 | 6.88% |
| £1,250,000 | £86,750 | 6.94% |
Frequently asked questions
How much is stamp duty on a £1,200,000 property?
The LTT on a £1,200,000 property in Wales is £81,750 for standard buyers (effective rate: 6.81%). First-time buyers pay £81,750, and additional property buyers pay £129,750.
Do first-time buyers pay stamp duty on £1,200,000?
Yes. First-time buyers pay £81,750 in LTT on a £1,200,000 property in Wales.
When do I pay LTT?
LTT must be paid within 14 days of completing your property purchase. Your solicitor or conveyancer will typically handle the payment and HMRC submission on your behalf. The tax is calculated on the purchase price of the property and varies based on whether you are a first-time buyer, standard buyer, or purchasing an additional property.
Can I add LTT to my mortgage?
Some lenders allow you to add stamp duty to your mortgage, but this is generally not recommended as you'll pay interest on it over the full mortgage term. On a £1,200,000 property with £81,750 in LTT, adding it to a 25-year mortgage at 5.5% would cost you an extra £68,855 in interest over the term. It also increases your loan-to-value ratio, which may affect the interest rate you're offered.