BUYING
Land Transaction TaxA buyers guide to LTT or stamp duty
Buying
Land Transaction Tax
What is LTT?
Land and Buildings Transaction Tax in Wales and Scotland (or Stamp duty land tax in England) is a lump-sum tax that anyone buying a property or land costing more than a set amount has to pay. The rate of tax you’ll pay varies depending on the price and type of property (we’ll focus on residential buildings, rather than commercial).
Calculate Land Transaction Tax for Wales
Land Transaction Tax (LTT) has replaced Stamp Duty in Wales.
Stamp Duty has been replaced by Land Transaction Tax (LTT) for properties bought in Wales. LTT will apply to residential properties costing over £180,000. You can use this calculator to find the amount of Land Transaction Tax you’ll have to pay. You can also work out the cost of LTT on any additional properties you purchase over £40,000, like buy to lets or second homes, which will be charged a 3% additional supplement.
Land Transaction Tax Example:
If you buy a house for £260,000, you will pay:
| 0% on the first £180,000 | £0 |
| 3.5% on the next £70,000 | £2450 |
| 5% on the final £10,000 | £500 |
| The total LTT will be | £2,950 |
land transaction tax Charges
Land Transaction Tax you’ll pay in Wales
Use the below tabs to find what percentage of LTT you will pay depending on your property value.
- Up to £180,000
- £180,000 - £250,000
- £250,000 - £400,000
- £400,000 - £750,000
- £750,000 - £1,500,000
- £1,500,000 +
0%
Buy to let / Second home rate
3%
Source: HMRC
3.5%
Buy to let / Second home rate
6.5%
Source: HMRC
5%
Buy to let / Second home rate
8%
Source: HMRC
7.5%
Buy to let / Second home rate
10.5%
Source: HMRC
10%
Buy to let / Second home rate
13%
Source: HMRC
12%
Buy to let / Second home rate
15%
Source: HMRC
Working out how much Land Transaction Tax you will need to pay
As the price you pay for a new property increases, so do the rates of LTT or stamp duty. You pay a percentage of the cost, and the rate payable leaps up at a set of thresholds – but, you only pay the proportion of the purchase price that’s actually above the thresholds at the higher rate. The figures for this charge can be found above.
How do I pay Land Transaction Tax?
If you are buying in the UK you have 30 days from the date of completion/date of entry (when all the contracts are signed and dated and you get keys) to pay transaction tax or stamp duty. If you do take longer than the 30 days you could face a fine and possibly interest on top, so try to ensure you do not miss the payment date! Your solicitor may sort this out and push you to pay the bill straight away. However, it’s legally your responsibility to ensure yourtransaction tax / stamp duty is paid.
Advice from Jeffrey Ross
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