LTT: valuing a non-cash payment for property
Non-cash payment and LTT
If you give something other than cash as part of the price for Welsh property, LTT normally uses its market value on the effective date.
- List every part of the price
- Value non-cash items at the relevant date
- Check whether a special rule applies
Scroll down for the full analysis.
Read the original guidance here:
LTT: valuing a non-cash payment for property
Land Transaction Tax (LTT), rather than Stamp Duty Land Tax, can apply when part of the price is not cash. That item may still count towards the amount paid for the property.
What this rule is about
People do not always pay only with money. When buyers give an asset, work or another thing of value as part of the deal, rather than money alone, LTT still needs a figure for that non-cash part. You must value it.
What the official source says
The Welsh Government guidance restates the statutory starting point: use the market value of non-cash payment on the effective date. In most cases, completion is that date.
- The rule covers payment that is not money.
- It also does not cover debt.
- Another Schedule 4 rule may override this starting point.
What this means in practice
Even if no cash changes hands and the parties have agreed an earlier estimate, you cannot leave part of the price out; you must value the item at the relevant date. That value counts.
- List everything you give as part of the deal.
- Separate cash, debt and non-cash items.
- Keep evidence that supports the value used.
How to analyse it
Begin by identifying what the buyer gives for the land. Then determine which valuation rule applies to each part.
- Is the item part of the agreed price?
- Is it money or debt?
- If not, what is its market value?
- What is the transaction’s effective date?
Example
When Sian pays £180,000 in cash and gives artwork as part of the price for a home, and the artwork’s market value on completion is £20,000, Sian uses that market value for the non-cash part. It is the required figure.
Why this can be difficult in practice
Market value is not always obvious. Where artwork, shares in a private company, or specialist goods are involved, no clear selling price may make it difficult for parties to establish market value. A figure written into the contract may not settle the question.
- The item’s condition can affect its value.
- Timing matters because value is tested on the effective date.
- Special rules can apply to some types of payment.
Key takeaways
- Non-cash payment can count for LTT.
- Use market value at the effective date.
- Money and debt follow different rules.
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 — schedule rules for amounts paid for land
- LTTA 2017 Schedule 4 para 1 — payments in money or money’s worth count
- LTTA 2017 Schedule 4 para 7 — valuing non-cash payment at the effective date
- LTTA 2017 Schedule 4 para 8 — how debt given for land is counted
- LTTA 2017 section 70 — meaning of market value for ltt
- LTTA 2017 section 71 — when a transaction’s effective date is
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
- Working out market value can need evidence and may be disputed, especially for unusual or hard-to-sell items.
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 every non-cash item or service given.
- A valuation or comparable evidence close to 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: valuing a non-cash payment for property [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 - schedule rules for amounts paid for land https://www.legislation.gov.uk/anaw/2017/1/section/18 - LTTA 2017 Schedule 4 para 1 - payments in money or money's worth count https://www.legislation.gov.uk/anaw/2017/1/schedule/4/paragraph/1 - LTTA 2017 Schedule 4 para 7 - valuing non-cash payment at the effective date https://www.legislation.gov.uk/anaw/2017/1/schedule/4/paragraph/7 - LTTA 2017 Schedule 4 para 8 - how debt given for land is counted https://www.legislation.gov.uk/anaw/2017/1/schedule/4/paragraph/8 - LTTA 2017 section 70 - meaning of market value for ltt https://www.legislation.gov.uk/anaw/2017/1/section/70 - LTTA 2017 section 71 - when a transaction's effective date is https://www.legislation.gov.uk/anaw/2017/1/section/71 Guidance page from the Welsh Revenue Authority on this topic (guidance, not law): https://www.gov.wales/chargeable-consideration-technical-guidance#5117 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 - Working out market value can need evidence and may be disputed, especially for unusual or hard-to-sell items. 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 4 September 2026
Useful article? You may find it helpful to read the original guidance here: LTT: valuing a non-cash payment for property
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