Multiple homes relief: how to calculate LTT
How the calculation works
The official guide uses an average-price method for a purchase of more than one home.
- Divide the total price by the number of homes.
- Calculate LTT on that average.
- Multiply the result by the number of homes.
Scroll down for the full analysis.
Read the original guidance here:
Multiple homes relief: how to calculate LTT
If you buy more than one home in one deal, this relief calculates Land Transaction Tax by taxing the average price per home.
You then multiply that result by the number of homes. It can reduce Land Transaction Tax, or LTT.
What this rule is about
When buyers purchase more than one home in a single deal, this relief changes the usual LTT calculation. It requires an average before the tax bands apply.
The calculation does not begin with the whole price. That matters because LTT uses tax bands.
What the official source says
The official guide sets out a simple three-step method for the price paid for all the homes.
- Add the total purchase price for all the homes.
- Divide that total by the number of homes bought.
- Work out LTT on that average amount.
- Multiply that tax figure by the same number of homes.
What this means in practice
Think of the calculation as testing the tax on one average home, then scaling it back up.
At the middle step, divide the total price by the number of homes. Before multiplying the result back up, use the official guide’s LTT calculator to calculate the tax. Use it for that step.
- Keep the total price and home count clear.
- Use the same number of homes at both ends.
- Check the LTT bands that apply on your transaction date.
How to analyse it
Start with the facts before using the formula. If the deal includes land, another type of property, or circumstances where you need to apportion the purchase price, the legal rules may become more involved.
Check the details.
- Check that the purchase includes at least two homes.
- Identify the amount paid for the homes.
- Check whether other property needs a fair split of the price.
- Check whether another linked purchase affects the calculation.
Example
Arun buys two homes together for £500,000. The average is £250,000. He calculates LTT on £250,000 using the applicable bands, then doubles that tax figure.
As the source does not give the bands, it cannot safely provide a final pound amount.
Why this can be difficult in practice
Where the purchase price covers homes as well as land or other property, or where a linked purchase is involved, the average may not tell the whole story.
The law has a minimum-tax rule. Separate rules also deal with price paid for land or other property and with linked purchases.
- A building may not be a separate home for this relief.
- Part of the price may relate to land rather than homes.
- A connected purchase may change the figures used.
Key takeaways
- Average the price across the homes bought.
- Calculate LTT on that average, then multiply back up.
- Check the wider rules if the deal is mixed or linked.
Technical analysis
For advisers, and for anyone who wants to check the law behind this page. You do not need this section to understand the guidance above.
Legislation
- LTTA 2017 section 27 — calculating tax using the applicable tax bands
- LTTA 2017 section 29 — relief changes the usual tax calculation rules
- LTTA 2017 section 73 — meaning of a dwelling for land transaction tax
- LTTA 2017 Schedule 13 para 3 — when relief for multiple homes can apply
- LTTA 2017 Schedule 13 para 4 — splitting the amount paid between homes and other property
- LTTA 2017 Schedule 13 para 5 — parts that make up the final tax amount
- LTTA 2017 Schedule 13 para 6 — calculating tax on the average amount per home
Official guidance
The pages below are the Welsh Revenue Authority’s guidance. Guidance is not law. It sets out how the Welsh Revenue Authority reads the legislation, and it is not binding on you, on a tribunal or on a court. Where guidance and the legislation differ, the legislation wins. the Welsh Revenue Authority can also change or withdraw guidance, and it may not cover your facts.
Where this is not settled
- The supplied official extract does not state the LTT bands or the statutory minimum percentage.
- Whether each part of a purchase is a separate home can depend on the facts.
Evidence you would need
This kind of case is decided on the facts of the individual property. These are the records that usually settle it, and the ones an adviser would ask you for.
- The contract and completion statement showing the total amount paid.
- A list of the homes included in the purchase.
- Details of any land or other property bought with the homes.
- Details of any linked property purchases.
Explore this with an AI
Readers often want to test their own situation. Copy the prompt below into ChatGPT, Claude or Gemini. It hands the model the actual legislation for this page rather than letting it answer from memory, and tells it to be explicit about what is uncertain. What comes back is information, not advice – check it against the links above.
I am researching Land Transaction Tax (LTT), the tax on property in Wales. It replaced Stamp Duty Land Tax in Wales on 1 April 2018, and SDLT does not apply in Wales. MY QUESTION Multiple homes relief: how to calculate LTT [Replace this with your own situation: what you are buying, the price, the dates, who the buyer is, and what you plan to do with the property.] THE LAW THIS TURNS ON - LTTA 2017 section 27 - calculating tax using the applicable tax bands https://www.legislation.gov.uk/anaw/2017/1/section/27 - LTTA 2017 section 29 - relief changes the usual tax calculation rules https://www.legislation.gov.uk/anaw/2017/1/section/29 - LTTA 2017 section 73 - meaning of a dwelling for land transaction tax https://www.legislation.gov.uk/anaw/2017/1/section/73 - LTTA 2017 Schedule 13 para 3 - when relief for multiple homes can apply https://www.legislation.gov.uk/anaw/2017/1/schedule/13/paragraph/3 - LTTA 2017 Schedule 13 para 4 - splitting the amount paid between homes and other property https://www.legislation.gov.uk/anaw/2017/1/schedule/13/paragraph/4 - LTTA 2017 Schedule 13 para 5 - parts that make up the final tax amount https://www.legislation.gov.uk/anaw/2017/1/schedule/13/paragraph/5 - LTTA 2017 Schedule 13 para 6 - calculating tax on the average amount per home https://www.legislation.gov.uk/anaw/2017/1/schedule/13/paragraph/6 Guidance page from the Welsh Revenue Authority on this topic (guidance, not law): https://www.gov.wales/land-transaction-tax-relief-multiple-dwellings-guide HOW I WANT YOU TO ANSWER 1. Work from the legislation above. Read it before answering. Guidance from the Welsh Revenue Authority is its view of the law, not the law, and does not bind a tribunal or a court. 2. Tell me what the rule actually requires, in plain English. 3. Tell me which facts decide the answer, and which facts would change it. 4. Tell me what evidence I would need to support the position. 5. Be explicit about anything unsettled or fact-sensitive. Do not guess. 6. Your training data has a cutoff and SDLT rates and reliefs change at fiscal events. Say so if you are not sure the law is current. POINTS ALREADY KNOWN TO BE UNCERTAIN ON THIS TOPIC - The supplied official extract does not state the LTT bands or the statutory minimum percentage. - Whether each part of a purchase is a separate home can depend on the facts. Do not give me a conclusion you cannot support from the provisions above.
Legislation links show the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 as it stood on 2025-11-17. The law may have changed since, and the rules that apply are those in force on the date of your transaction. The official guidance this page is based on is here.
This page was last updated on 3 September 2026
Useful article? You may find it helpful to read the original guidance here: Multiple homes relief: how to calculate LTT
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