Stamp Duty Calculator Wales

Land Transaction Tax (LTT) 

Land Transaction Tax (LTT) applies to residential, commercial, land and mixed-use property purchases across Wales.

The tax is due on freehold and leasehold sales as well as transfers of Welsh property or land in exchange for money. Open market, auction, private, off-market and portfolio property buyers all need to pay this tax.

LTT replaced Stamp Duty Land Tax (SDLT) on April 1st 2018 and has a minimum threshold of £225,000 for both residential and non-residential property / land.

The amount of payable LTT is only applied as a percentage of part of the price above each band (or threshold) and up to the next band.

Paying Welsh Stamp Duty 

Unlike Stamp Duty in England, Northern Ireland and Scotland, the Land Transaction Tax is self-assessed.

This means it’s the sole responsibility of the property buyer (and taxpayer) to complete and submit the return and pay any tax owed. A conveyancing solicitor will often do it on the purchaser’s behalf within 30 days of the completion date. It’s also possible to send a return via the post and pay the Welsh Revenue Authority directly. Note that the seller has no responsibility.

How much is due will depend on whether the property is residential or non-residential (such as commercial or mixed-use buildings). If you are buying a second or cross-border property, the level of LTT may be higher.

Note that the following exemptions apply:

• The property has been inherited (as part of a will) and there was no payment for its transfer;
• The property is transferred after a divorce, legal separation or dissolution of a civil partnership;
• The freehold property is purchased for less than £40,000
• For leasehold properties, if the lease is new or assigned for 7 years or more.  The premium must be under £40,000 and the annual rent under £1,000;
• For leasehold properties, again only if the lease is new or assigned for 7 years or more, where the amount paid is less than the residential / non-residential LTT 0% band.

Is There First-Time Buyer Relief in Wales?

Unfortunately not.

There are, however, reliefs available in the following circumstances:

• Where more than one property is being purchased (multiple dwellings relief)
• Should the purchaser be a registered charity
• Where properties are transferred within a group structure.

It’s also worth noting that the 0% stamp duty threshold is £100,000 higher relative to England and Northern Ireland (and £80,000 higher relative to Scotland’s SDLT rates).

Higher Rate Land Transaction Tax

A higher or additional rate of LTT is due when you buy an additional property anywhere in Wales worth over £40,000 and you already own one or more homes.

These include:

• Any residential properties owned on behalf of any children under the age of 18;
• Any residential properties held within a trust.

The following rates apply:

Higher LTT Rate Exemptions

This elevated level of tax is not due on the following types of purchase:

• The property has commercial elements (such as a shop or office with a residential flat above);
• The property is not entirely static (such as a caravan, mobile home or houseboat);
• A freehold property that has an underlying lease with over 21 years remaining, held by some not connected with you.

Temporarily Owning 2 Properties at the Same Time

If you purchase a second property and still own your original home, in most cases you can apply for a refund once you sell.

Note that you will still need to pay the higher rate of LTT when buying a second property.  The refund will then be the difference between the higher and the standard rates.

Note that there will be no entitlement to a refund if a spouse or civil partners still owns part of the previous main home.

Multiple Dwellings Relief / Subsidiary Dwelling Exception

If a buyer is acquiring multiple properties simultaneously or a building that has two separate residential units (under separate titles), there may be an LTT relief which will reduce the overall tax burden.

If the sale involves 6 or more properties, the buyer can also opt to pay non-residential LTT rates – as highlighted in the next section.

Non-Residential and Mixed-Use LTT Rates

Non-residential property in Wales includes offices, shops / retail units, warehouses, industrial units, garages, factories, working farmland – i.e. often used for commercial (business) purposes.

Mixed-use properties are those that have residential and non-residential elements – more commonly a shop or office down below and flat above. Dentists, doctors surgeries and public houses are other examples of buildings that have  both residential and commercial aspects.

The Welsh Revenue Authority has its own rules regarding certain types of building / land and whether they would be classified as non-residential or not. Broadly, it comes down to whether the property is being used personally or for commercial purposes.

We would suggest speaking to a qualified accountant and/or tax advisor who can check the specific guidance.