Main Land Transaction Tax rates for homes in Wales
Main point
For main residential purchases in Wales effective from 10 October 2022, LTT is calculated in bands. Each rate applies only to the part of the price in that band.
- 0% up to £225,000
- 6% from £225,001 to £400,000
- Higher bands apply only to higher slices
Scroll down for the full analysis.
Read the original guidance here:
Main Land Transaction Tax rates for homes in Wales
If you buy a home in Wales, Land Transaction Tax is the Welsh version of stamp duty. For transactions effective from 10 October 2022, the rate rises in steps as the price rises. You do not pay the top rate on the whole price.
What this rule is about
These are the main rates for buying residential property, whether you buy the freehold or a leasehold interest. Buyers work out the tax in bands, much like income tax.
That detail matters. When a price crosses a threshold, the new rate applies only to the relevant slice, rather than making the whole purchase more expensive at that new rate. That distinction matters.
What the official source says
For a transaction whose effective date is on or after 10 October 2022, the Welsh Government page gives the following main residential LTT rates. Completion is normally the effective date.
- Buyers pay 0% on the first £225,000.
- Buyers pay 6% on the part above £225,000 and up to £400,000.
- Buyers pay 7.5% on the part above £400,000 and up to £750,000.
- The part above £750,000 and up to £1.5 million is taxed at 10%.
- Any part above £1.5 million is taxed at 12%.
Legislation requires regulations to set residential rates and bands and, for an unlinked purchase, says the tax is the total of the separate calculations for each band. Each band stands alone.
What this means in practice
Start with the price, then split it at each threshold it passes. People most often miss that only the slice in a band takes that band’s rate.
- A purchase at £225,000 has no tax under these main rates.
- A purchase at £225,001 has 0% on £225,000 and 6% on £1.
- Moving into the 7.5% band does not change the 0% or 6% slices.
- These figures are for the main residential rates, not every possible LTT outcome.
How to analyse it
Ask one question at a time. Use a calculator only after choosing the right type of property and the right date.
- Confirm that the land is in Wales.
- Work out the transaction’s effective date, usually the completion date.
- Check whether the property is residential for LTT purposes.
- Identify the full amount paid for the property.
- Divide that amount between the published bands.
- Add the tax due for each slice.
Residential property can include garden or grounds and rights that benefit the home, while special rules can also affect larger purchases.
Example
Illustration: Nia buys a house for £500,000 and completes after 10 October 2022. Nia pays 0% on the first £225,000. On the next £175,000, she pays 6%, which is £10,500, and on the remaining £100,000, she pays 7.5%, which is £7,500. Her total main-rate LTT is £18,000.
Why this can be difficult in practice
Usually, the arithmetic is straightforward. Choosing the correct treatment is not always so simple, especially where land, a lease, or more than one property is involved.
- People sometimes apply one rate to the whole purchase price.
- Under the wider LTT rules, the completion date may not always be the effective date.
- Land sold with a home may raise questions about what forms its grounds.
- A purchase that is not a straightforward main residential purchase may need different rates or rules.
- For transactions affected by the October 2022 change, the official source has separate guidance.
Key takeaways
- Main LTT rates apply by slices of the price.
- From £225,001, only the excess enters the 6% band.
- Check the current published rates before relying on a calculation.
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 24 — residential tax bands and rates set by regulations
- LTTA 2017 section 27 — calculating tax separately for each rate band
- LTTA 2017 section 71 — when a land transaction takes effect
- LTTA 2017 section 72 — what counts as residential 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 statutory material does not contain the rate-setting regulations or a currency notice. The published figures should therefore be checked against the current Welsh Government rates page for a transaction taking place now.
- Whether land or a building is residential property can depend on its actual use, suitability, and the land included in the 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 agreed price and any other amount given for the property
- The completion date or other effective date
- Whether the property and included land are residential
- Whether any separate LTT treatment may apply
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 Main Land Transaction Tax rates for homes in Wales [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 24 - residential tax bands and rates set by regulations https://www.legislation.gov.uk/anaw/2017/1/section/24 - LTTA 2017 section 27 - calculating tax separately for each rate band https://www.legislation.gov.uk/anaw/2017/1/section/27 - LTTA 2017 section 71 - when a land transaction takes effect https://www.legislation.gov.uk/anaw/2017/1/section/71 - LTTA 2017 section 72 - what counts as residential property https://www.legislation.gov.uk/anaw/2017/1/section/72 Guidance page from the Welsh Revenue Authority on this topic (guidance, not law): https://www.gov.wales/land-transaction-tax-rates-and-bands#8917 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 statutory material does not contain the rate-setting regulations or a currency notice. The published figures should therefore be checked against the current Welsh Government rates page for a transaction taking place now. - Whether land or a building is residential property can depend on its actual use, suitability, and the land included in the 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: Main Land Transaction Tax rates for homes in Wales
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