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What is Land Transaction Tax (LTT)?
Last verified 23 October 2026
Land Transaction Tax is the tax paid on buying property or land in Wales. It replaced Stamp Duty Land Tax in Wales from 1 April 2018 and is managed by the Welsh Revenue Authority for the Welsh Government.
Why it matters to landlords
The main residential rates, in force since 10 October 2022, are 0% up to £225,000, 6% to £400,000, 7.5% to £750,000, 10% to £1.5 million and 12% above. If you already own one or more residential properties, the higher residential rates usually apply instead. Since 11 December 2024 these are 5% up to £180,000, 8.5% to £250,000, 10% to £400,000, 12.5% to £750,000, 15% to £1.5 million and 17% above. Companies buying residential property pay the higher rates. Replacing your main home may mean they do not apply.
LTT is self assessed. The return and payment are due within 30 days of the day after completion, and a return is usually needed even when no tax is due.
Example
A landlord who already owns a home buys a £200,000 house in Cardiff to let. At the higher residential rates they pay 5% on £180,000 and 8.5% on £20,000, so £10,700. A buyer owning no other property would pay nothing at that price under the main rates.
Related terms
- Stamp Duty Land Tax (SDLT)
- Land and Buildings Transaction Tax (LBTT)
- SDLT higher rates surcharge
- Rent Smart Wales
- Buy-to-let mortgage