When acquiring a residential dwelling in Wales with a purchase price exceeding £225,000, one can anticipate incurring a Land Transaction Tax (LTT) obligation. This levy, collected by the Welsh Revenue Authority, is applicable to both freehold and leasehold acquisitions within Wales. LTT is levied on what’s termed as ‘chargeable consideration’—commonly, this refers to the property’s purchase price along with any permanent fixtures and installations. The obligation to settle this tax arises within 30 days following the acquisition or leasing of a property.

Distinct from the Stamp Duty Land Tax (SDLT) applicable elsewhere, LTT features several variances including a higher exemption threshold. Notably, unlike in other regions, Wales does not offer first-time buyers any tax relief under this scheme. An adjustment to the LTT payment threshold was publicly announced by the Welsh Government in September 2022, raising the threshold from £180,000 to £225,000, effective from 10 October 2022. Furthermore, this announcement was accompanied by an increase in the LTT rate for residential properties priced above £345,000.

To ascertain the LTT amount you may be expected to pay based on your property’s purchase value, you’re encouraged to use the provided calculator tool.

Please note, the calculator and the information provided herein are designed for general informational purposes and should not be construed as personalized advice. While efforts are made to ensure the accuracy and currency of the information, it may not encompass all scenarios or be applicable to every residential property transaction in Wales.

In the event that you have any further questions regarding your landlord accountancy queries, please contact us by calling 0800 907 8633 or by emailing enquiries@fixedfeetaxreturn.co.uk or completing our online contact form.