What counts as the amount you pay for LTT?
In brief
For Welsh LTT, the amount paid can include more than cash. It may include other value given for the property, directly or indirectly.
- Check all parts of the bargain
- Consider value given by connected people
- Keep evidence of side arrangements
Scroll down for the full analysis.
Read the original guidance here:
What counts as the amount you pay for LTT?
For Land Transaction Tax, or LTT, the amount can include more than the price on the contract when the wider bargain provides money or money’s worth for the property. Wales’s property tax, often grouped with stamp duty, can include other valuable things.
What this rule is about
The legal name is chargeable consideration. In plain terms, it means everything that goes to the seller as value for the property. This matters because it is the figure for working out LTT.
Cash is the simple case. Other arrangements can be less obvious.
What the official source says
The Welsh Revenue Authority’s technical guidance reflects the law in Schedule 4 and explains that, unless another rule says otherwise, the amount includes money or money’s worth given for the property. That is the rule.
- It includes cash paid for the property.
- It can include something valuable instead of cash.
- The buyer may give the value directly.
- Someone else may provide the value indirectly.
- It can include value given by someone connected with the buyer.
What this means in practice
Look beyond the stated price. If part of the bargain involves another benefit for the seller, it may form part of the amount used for LTT.
- Keep a clear record of the whole deal.
- Check side letters and separate agreements.
- Ask whether anyone linked to you gives value as part of the deal.
How to analyse it
Start by identifying everything the seller receives in return for the property, then establish who provides each part and whether the agreed arrangements require it. Then check why.
- What cash will be paid?
- Does anyone give anything else of value?
- Is it given in return for the property?
- Does a connected person give any part of that value?
- Does another Schedule 4 rule expressly change the answer?
Example
Mina agrees to pay £200,000 for a house. In the same deal, someone connected with Mina gives the seller an item worth £5,000. On these facts, the amount to consider is £205,000, not only the cash price. The item has value, and it forms part of the bargain.
Why this can be difficult in practice
This is the part people can miss: calling something a separate arrangement does not settle the issue. What matters is whether the arrangement gives the seller value for the property.
- Valuing non-cash items can be difficult.
- Side deals can affect the property purchase.
- Check separately whether someone is connected with you.
Key takeaways
- The contract price may not be the full LTT amount.
- Cash and other valuable benefits can count.
- Check the whole bargain, including indirect value.
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 18 — introduces the rules on amounts paid for land
- LTTA 2017 Schedule 4 para 1 — defines money or value given for a property
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 source does not explain when another person is connected with the buyer.
- Working out the value of something other than cash 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 any side agreements
- Details of cash, property, services or other value given
- Evidence of payments or benefits provided by connected persons
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 What counts as the amount you pay for 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 18 - introduces the rules on amounts paid for land https://www.legislation.gov.uk/anaw/2017/1/section/18 - LTTA 2017 Schedule 4 para 1 - defines money or value given for a property https://www.legislation.gov.uk/anaw/2017/1/schedule/4/paragraph/1 Guidance page from the Welsh Revenue Authority on this topic (guidance, not law): https://www.gov.wales/chargeable-consideration-technical-guidance#5111 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 source does not explain when another person is connected with the buyer. - Working out the value of something other than cash 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: What counts as the amount you pay for LTT?
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