LTT Explained: Wales Property Tax (2026/27)

LTT explained: Wales property tax (2026/27)

Land Transaction Tax (LTT) is the tax you pay when you buy property or land in Wales. It replaced Stamp Duty Land Tax (SDLT) in 2018, is administered by the Welsh Revenue Authority, and works on progressive bands — so each rate applies only to the slice of the price within that band.

By the Vortex Finance broker desk · Reviewed for accuracy · 6 min read

What is LTT?

LTT is the Welsh equivalent of stamp duty, collected by the Welsh Revenue Authority rather than HMRC. If you buy a home, a buy-to-let or commercial property in Wales, you pay LTT instead of the SDLT charged in England and Northern Ireland or the LBTT charged in Scotland. Like SDLT, it is charged progressively: you pay a different rate on each portion of the price, not a single rate on the whole figure.

Main residential LTT bands (2026/27)

For a standard residential purchase — where you do not own another property — the main rates are tiered as follows:

Main residential LTT bands

0% on the portion up to £225,000
6% on £225,001 to £400,000
7.5% on £400,001 to £750,000
10% on £750,001 to £1,500,000
12% on the portion above £1,500,000

Wales has no first-time-buyer relief. Unlike England (SDLT) and Scotland (LBTT), there is no special first-time-buyer rate or raised threshold — first-time buyers in Wales simply pay the main rates above. The nil-rate band up to £225,000 is comparatively generous, so many lower-priced purchases pay no LTT at all.

Higher (additional-property) LTT bands

If you are buying a second home, a buy-to-let, or purchasing through a limited company, you pay the higher residential rates instead. In Wales these higher rates are themselves progressive — the surcharge is baked into each band rather than added as a single percentage of the whole price:

Higher residential LTT bands

5% on the portion up to £180,000
8.5% on £180,001 to £250,000
10% on £250,001 to £400,000
12.5% on £400,001 to £750,000
15% on £750,001 to £1,500,000
17% on the portion above £1,500,000

Worked example: a £500,000 purchase

Take a £500,000 property bought as a main home. The progressive main-rate LTT is calculated band by band:

Main-rate LTT on £500,000

0% on the first £225,000 = £0
6% on the next £175,000 (£225,001–£400,000) = £10,500
7.5% on the next £100,000 (£400,001–£500,000) = £7,500
Total LTT = £18,000 (an effective rate of 3.6%)

If that same £500,000 property is a second home or buy-to-let, the higher rates apply across every band instead:

Higher-rate LTT on £500,000

5% on the first £180,000 = £9,000
8.5% on the next £70,000 (£180,001–£250,000) = £5,950
10% on the next £150,000 (£250,001–£400,000) = £15,000
12.5% on the next £100,000 (£400,001–£500,000) = £12,500
Total LTT = £42,450 (an effective rate of 8.49%)

That extra £24,450 of tax on an investment purchase is the line investors most often underestimate, so model it before you offer.

This is general information, not tax advice — confirm figures with your accountant or conveyancer. Reliefs, mixed-use, multiple-dwellings and the rules on replacing a main residence can all change your liability, and the Welsh Revenue Authority sets the definitive position.

Where Vortex Finance fits

We arrange the finance; you confirm the tax. Once you know your LTT position, we shop the market for the lending around the purchase — whether that is a Welsh buy-to-let mortgage, a commercial mortgage, a short-term bridging loan to move at speed, or development finance for a build. Asking won’t affect your credit score.

All calculators Explore buy-to-let mortgages