Stamp Duty & LTT

1. Stamp Duty is the tax you pay when you buy a property. Wales introduced its own version, Land Transaction Tax (LTT) in 2018.
2. LTT operates in a similar way to SDLT, although the rates and thresholds are different and there is no relief for first time buyers.

3. Like England, there are punitive taxes for buying a second (or more) property. The 2023 rates for a primary residence are

   Cost	Tax
   Up to £225,000	0%
   The portion between £225,000 – £400,000	6%
   The portion between £400,000 – £750,000	7.5%
   £ The portion between 750,000 – £1.5mn	10%

   For a second property, the rates and bands are

   Cost	Tax
   Up to £180,000	4%
   The portion between £180,000 – £250,000	3.5%
   The portion between £250,000 – £400,000	5%
   The portion between £400,000 – £750,000	7.5%
   The portion between £750,000 – £1.5mn	10%

4. As you can see, LTT is a huge expense and should be carefully considered as part of your investment plan.
5. Multiple Dwellings Relief is available for properties bought as part of a larger transaction. This can be a complex area, particularly where there is a mix of residential, commercial or agricultural land.
6. Exemptions. Transfers between spouses and civil partners will not normally be chargeable and there are reliefs for property that is gifted.

LTT can be complex particularly if your solicitor isn’t used to dealing with Welsh property purchases. Property Tax Wales are experts in this area, so give us a call if you are unsure.