Guide on Paying Land Transaction Tax to Welsh Revenue Authority

Paying Land Transaction Tax to the Welsh Revenue Authority

Land Transaction Tax must be paid separately from filing the return. The tax must reach the Welsh Revenue Authority in full within 30 days starting the day after the transaction’s effective date, which is usually completion. Using the correct payment reference and allowing enough time for the payment method are important to avoid delay, interest or penalties.

• LTT is self-assessed, so the taxpayer remains responsible for an accurate return and on-time payment, even if a solicitor or conveyancer handles it.
• Filing the return does not count as paying the tax; cleared funds must be received by the WRA by the deadline.
• For online returns, use the 12-digit UTRN and pay the exact amount shown, with a separate payment for each return.
• For paper returns not yet processed, use the land postcode plus the buyer’s surname or organisation name as the payment reference.
• If paying a penalty, use the UTRN shown on the penalty notice rather than the return reference.
• The WRA accepts digital payments such as electronic transfer, CHAPS and BACS, but BACS should be sent 4 working days before the due date.

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Paying Land Transaction Tax: when payment is due, how to pay, and what reference to use

This page explains the practical rules for paying Land Transaction Tax (LTT) to the Welsh Revenue Authority (WRA). The key point is simple but important: filing the return is not the same as paying the tax. The tax must be paid in full by the statutory deadline, and the payment reference must match the transaction so the WRA can allocate it correctly.

What this rule is about

LTT is a self-assessed tax. That means the taxpayer is responsible for making sure an accurate return is submitted and that any tax due is paid on time. In practice, a solicitor or conveyancer will often file the return and arrange payment, but the underlying responsibility remains with the taxpayer.

The official guidance is concerned with three practical issues:

• when payment must reach the WRA,
• how payment should be made, and
• what payment reference should be used so the WRA can match the money to the correct return or penalty.

What the official source says

The WRA says that once an LTT return has been submitted, the taxpayer, or a solicitor or conveyancer acting for them, must pay any tax due.

Payment must be made within 30 days from the day after the effective date of the transaction. The effective date is usually the completion date.

Full payment must be received by the due date. If it is not, penalties and interest may be charged.

If the return is filed online, the payment should use the 12-digit Unique Transaction Reference Number (UTRN) from the online account. The WRA says the payment should be for the exact amount shown as due on the return, with a separate payment for each return. The amount should not be rounded up or down.

If a paper return is submitted, there will not be a UTRN until the return has been manually processed. Until then, the payment reference should be either:

• the postcode of the land followed by the buyer’s surname, or
• the postcode of the land followed by the buyer’s organisation name.

The guidance gives the example CF379EH\Bloggs.

If the payment is for a penalty, the payment should use the UTRN shown on the penalty notice.

The WRA accepts digital payments, including electronic funds transfer, CHAPS and BACS. The guidance warns that BACS payments must be sent 4 working days before the due date. It also warns that payment may be delayed if the reference does not match.

What this means in practice

The practical message is that there are two separate compliance steps:

• submit the LTT return, and
• ensure cleared funds reach the WRA by the deadline.

Doing one without the other is not enough. A return can be filed on time, but if the tax arrives late, interest and possibly penalties can still arise.

The deadline is measured by reference to the effective date of the transaction, which is usually completion. The guidance says payment must be made within 30 days from the day after that date. Readers should therefore work from the transaction’s effective date, identify the filing and payment deadline, and make sure the WRA receives the money in time.

The payment reference matters because the WRA uses it to allocate the payment. If the wrong reference is used, or the reference is incomplete, the money may not be matched to the return promptly. That can create avoidable compliance problems even if the funds were sent on time.

The guidance also makes clear that each return should be paid separately. Combining several LTT liabilities into one payment may make allocation more difficult and can lead to delay or confusion.

How to analyse it

A sensible way to deal with payment is to work through the following points:

• Has the effective date of the transaction been identified correctly? It is usually completion, but the guidance only says “usually”, so the correct effective date still matters.
• Has the return already been submitted? Payment follows submission, and the reference to use depends on whether the return was filed online or on paper.
• If filed online, is the 12-digit UTRN being used exactly as required?
• If filed on paper and no UTRN has yet been issued, is the payment reference in the correct format using the land postcode and the buyer’s surname or organisation name?
• Is the payment for the exact amount of tax shown on the return, without rounding?
• Is there a separate payment for each return?
• Is the payment method fast enough for the deadline? In particular, BACS needs to be sent 4 working days before the due date.
• If paying a penalty rather than the tax itself, is the UTRN from the penalty notice being used?

For conveyancers and taxpayers, the main operational risk is leaving payment too late or using a reference that does not match the WRA’s records.

Example

Illustration: a buyer completes a land transaction in Wales and the effective date is the completion date. The buyer’s solicitor files the LTT return online. The tax shown as due on the return must then be paid in full within 30 days from the day after completion. When making the bank payment, the solicitor should use the 12-digit UTRN from the online account, pay the exact amount shown on the return, and keep that payment separate from any payment for another transaction.

If instead the return is filed on paper and no UTRN has yet been issued, the payment reference should use the postcode of the land and the buyer’s surname or organisation name, for example in the format shown by the WRA.

Why this can be difficult in practice

The legal rule itself is straightforward, but administrative mistakes are common. A few points can cause difficulty:

• The taxpayer may assume that once the return is filed, the process is complete. It is not. Payment is a separate obligation.
• The deadline is about receipt by the due date, not simply starting the payment process. That matters especially for slower banking methods.
• Paper returns create an extra practical issue because the UTRN is not available immediately. The temporary reference must therefore be used carefully.
• If several matters are being handled at once, it is easy to send a combined payment or to use the wrong reference. The WRA guidance indicates that this can delay allocation.
• The guidance says the effective date is usually completion. In any case where the effective date may be something else, the timing analysis needs particular care.

Key takeaways

• LTT must be paid in full within 30 days from the day after the transaction’s effective date, usually completion.
• Use the correct payment reference: the UTRN for online returns, a postcode-and-name reference for unprocessed paper returns, and the penalty notice UTRN for penalties.
• Pay the exact amount due, make a separate payment for each return, and allow enough time for the payment method to reach the WRA by the deadline.

This page was last updated on 24 March 2026

Useful article? You may find it helpful to read the original guidance here: Guide on Paying Land Transaction Tax to Welsh Revenue Authority

View all WRA LTT Guidance Pages Here