Land Transaction Tax (LTT) is a tax levied on the purchase or transfer of property or land in Wales.
Introduced in Wales on April 1, 2018, it replaced the UK-wide Stamp Duty Land Tax (SDLT), following the devolution of tax powers to the Welsh government. LTT applies to both residential and commercial property transactions, as well as to leases.
Please note, our Welsh Land Transaction Tax Calculator above, is only suitable for calculations involving non-residential property purchases.
The current Land Transaction Tax rates for non-residential property purchases and commercial transactions in Wales, as outlined by the Welsh Revenue Authority, can be found below.
The Welsh government uses LTT to raise revenue, which contributes to public services. It also aims to make property taxes more progressive, ensuring higher-value transactions are taxed at a higher rate than lower-value ones.
The amount of LTT payable depends on the value of the Welsh property and is structured in a tiered system. Buyers pay a higher percentage on the portion of the property price that exceeds each tax threshold.
For non-residential properties (which include commercial properties, land, and mixed-use properties), the current price thresholds for LTT are as follows:
These thresholds are specific to non-residential property. For residential properties, LTT has different price bands and rates, with different rates applied for first-time buyers and additional properties, such as second homes or buy-to-let investments, which are taxed more heavily.
If you purchase a commercial property in Wales for £674,000, the Land Transaction Tax is calculated as follows:
Total LTT: £13,450
In the context of Welsh Land Transaction Tax, a non-residential property refers to any property or land that is not intended for residential use. This includes commercial properties such as offices, shops, and industrial units. Non-residential property also encompasses land that is purchased for development or business purposes, such as agricultural land (working farmland) or forests.
Mixed-use properties, which combine both residential and non-residential elements, are also considered non-residential for LTT purposes. For example, if a property includes both a shop and a flat or a house with a doctor’s surgery attached, would be classed as non-residential.
In addition, certain special-use buildings fall under this category. These include hospitals, care homes, student accommodation (halls of residence), hotels, and prisons. Properties that do not meet the criteria for residential use, or that are used for specific institutional or commercial purposes, are taxed under the non-residential tax bands and rates.
Yes, you pay Land Transaction Tax (LTT) on the purchase of agricultural land in Wales. As mentioned, agricultural land is considered non-residential property for LTT purposes, and the tax is calculated using the non-residential property tax bands and rates.
Agricultural land used for farming or other agricultural activities is treated like any other non-residential land purchase.
In England, Northern Ireland, and Scotland, Land Transaction Tax does not apply, instead alternative taxes are applied by HMRC or Revenue Scotland.
To calculate Land and Buildings Transaction Tax and Stamp Duty using our above LTT Calculator, please select either "England, N. Ireland" or "Scotland" from the drop down menu when selecting your UK country.
Alternatively, use our dedicated Commercial Stamp Duty Calculator or Land and Buildings Transaction Tax Calculator for quick and easy tax calculations.
