LTT example: buying two homes on or after 13 February 2026
In short
For purchases on or after 13 February 2026, multiple dwellings relief uses an average-price calculation but cannot reduce LTT below 3% of the price paid for the homes.
- The official example covers two neighbouring homes bought together for £100,000.
- The higher LTT rates apply in that example.
- The supplied text does not show the final calculation table.
Scroll down for the full analysis.
Read the original guidance here:
LTT example: buying two homes on or after 13 February 2026
If you buy two homes together, multiple dwellings relief may reduce your LTT bill, but from 13 February 2026, even when it applies, it cannot reduce tax below 3% of the amount paid for the homes. That is the minimum. LTT is Wales’s version of stamp duty.
What this rule is about
Multiple dwellings relief uses the average price of each home instead of treating the whole price as one purchase. This can lower the tax. A minimum charge now limits that saving.
Where a lower average price would otherwise produce very little tax, this matters most.
What the official source says
In an example from the Welsh Revenue Authority, Miss B buys two neighbouring homes from one seller on 20 February 2026 for £100,000 in total. It says the higher LTT rates apply.
- Both homes are bought on the same day.
- They are bought from the same seller.
- The total price is £100,000.
- Use the higher LTT rates.
What this means in practice
Divide the total price by the number of homes first. Then work out LTT on that average using the rates that apply. Finally, multiply the result by the number of homes.
- Start with the total amount paid.
- Divide it by the number of homes.
- Apply the relevant LTT bands to that average.
- Multiply the result by the number of homes.
- Check the 3% minimum.
How to analyse it
Buying two properties alone is not enough. Relevant facts still matter. Although the official example says the higher rates apply, another purchase may differ.
- Check that the purchase can use the relief.
- Check the date that counts for LTT.
- Confirm whether higher rates apply.
- Identify the total paid for the homes.
- Compare the average-price result with the 3% minimum.
Example
Miss B pays £100,000 for two neighbouring homes. For each home, the average price is £50,000. Calculate higher LTT rates on £50,000, then double that figure. Whatever that result is, the statutory minimum alone is £3,000: 3% of £100,000. The supplied source text does not show its final calculation table.
Why this can be difficult in practice
Calculating the average is simple where each home has an equal value. Where one home is worth much more, or where land and other property are included, working out the average may be less clear.
- You may need to split the price fairly.
- The tax bands can change over time.
- The 3% minimum can remove much of the expected saving.
Key takeaways
- The example concerns LTT in Wales, not SDLT.
- From 13 February 2026, the minimum is 3%.
- Check the current rates before calculating the final bill.
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 Schedule 13 para 3 — when multiple homes can qualify for the relief
- LTTA 2017 Schedule 13 para 5 — how the relieved tax amount is made up
- LTTA 2017 Schedule 13 para 6 — how tax is worked out using an average; the minimum tax amount under the relief; using higher rates in the relief calculation
- Land Transaction Tax (Modification of Relief for Acquisitions Involving Multiple Dwellings) (Wales) Regulations 2026 reg 2 — the new three per cent minimum from 13 February (could not parse a provision)
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 text does not include the final calculation table or the tax bands used to reach a final LTT figure.
- The detailed 2026 regulations and their transitional rule should be checked before relying on this example for a live purchase.
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 completion date
- The agreed price for each home, or a fair split of the total price
- Whether the higher LTT rates apply
- The LTT rates in force on the effective date
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 LTT example: buying two homes on or after 13 February 2026 [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 Schedule 13 para 3 - when multiple homes can qualify for the relief https://www.legislation.gov.uk/anaw/2017/1/schedule/13/paragraph/3 - LTTA 2017 Schedule 13 para 5 - how the relieved tax amount is made up https://www.legislation.gov.uk/anaw/2017/1/schedule/13/paragraph/5 - LTTA 2017 Schedule 13 para 6 - how tax is worked out using an average https://www.legislation.gov.uk/anaw/2017/1/schedule/13/paragraph/6 - LTTA 2017 Schedule 13 para 6 - the minimum tax amount under the relief https://www.legislation.gov.uk/anaw/2017/1/schedule/13/paragraph/6 - LTTA 2017 Schedule 13 para 6 - using higher rates in the relief calculation 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 source text does not include the final calculation table or the tax bands used to reach a final LTT figure. - The detailed 2026 regulations and their transitional rule should be checked before relying on this example for a live purchase. 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: LTT example: buying two homes on or after 13 February 2026
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