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What The LTT Calculator Works Out
- Total LTT due: Land Transaction Tax replaced stamp duty in Wales in 2018 and is charged in slices. On a main home you pay nothing on the first GBP 225,000, 6% on the part up to GBP 400,000, 7.5% to GBP 750,000, 10% to GBP 1.5 million and 12% above. A GBP 250,000 home pays GBP 1,500; a GBP 350,000 home pays GBP 7,500.
- Effective rate: total tax divided by the price. Because the nil-rate band is high, most Welsh main-home purchases sit between 0% and 3%.
- Higher rates for additional property: a second home or rental purchase of GBP 40,000 or more moves the whole price onto a separate schedule starting at 5% from the first pound and rising to 17%. Unlike England's flat surcharge, this is a complete replacement set of bands, not an addition.
- No first-time buyer relief: Wales relies on its GBP 225,000 threshold for everyone, which means most Welsh first-time buyers pay no LTT anyway given typical prices.
- Cash needed on completion (advanced): deposit at your chosen percentage plus LTT plus legal and other fees. A 10% deposit is typical for main homes; landlord mortgages usually need 25%.
- Higher-rate element you could reclaim (advanced): if you buy a new main home before selling the old one you pay higher rates up front, but can reclaim the difference between the higher and main rates once the previous home sells within 3 years.
- First-time buyer flag (advanced): makes no difference in Wales but switches on England's GBP 300,000 nil-rate band (up to GBP 500,000) and Scotland's GBP 175,000 nil-rate band in the comparison cards.
- Same purchase in England and Scotland (advanced): what SDLT or LBTT would cost on the same price and purchase type, including England's 5% additional property surcharge and Scotland's 8% Additional Dwelling Supplement. Wales is usually cheapest for main homes under about GBP 350,000 but its higher rates are the steepest in the UK.
- Who pays: your solicitor files the LTT return and pays the Welsh Revenue Authority at completion. Standard residential purchases only; a guide, not tax advice.
Source and further reading: Welsh Government: Land Transaction Tax.