useful links

Useful Links

Welsh Revenue Authority (WRA)

The WRA will undertake all collection and management functions for LTT.

More info

Transitional
Guidance

WRA's are currently in the process of publishing their guidance for LTT. 

More info

Land Transaction Tax Calculator

Use WRA's calculator to work out how much LTT needs to be paid in a transaction.

More info

Cross-Border
Transactions

Guidance for properties that fall in more than one tax jurisdiction.

More info

Land Transaction Tax - Wales

Blue and Red Doors

“Today, the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Bill and Explanatory Memorandum, has been laid before the National Assembly for Wales. The Bill will establish a new tax on land transactions, which will replace stamp duty land tax in Wales from April 2018.” 

Mark Drakeford, Cabinet Secretary for Finance and Local Government
12 September 2016

What Did We Say?

From April 2018, Land Transaction Tax (LTT) will replace UK Stamp Duty Land Tax (SDLT) in Wales.

“The National Association of Estate Agents (NAEA) welcomes the new powers for the Welsh Government to collect Land Transaction Tax (LTT) receipts, as it will have a largely positive impact on the residential housing sector in the region. The introduction of the new initiative will create a fairer system and in turn increase the desirability of Welsh property.

“While, in the longer term, it may lead to an increase in house prices as demand rises, it will increase revenue for the Welsh Government which can be used to regenerate communities across the region. It will also ensure that the Welsh residential market remains healthy, which will be a boost to NAEA’s members across the border.”

Mark Hayward

Mark Hayward

Chief Executive

Shaping the Changes

NAEA Propertymark attended a stakeholder roundtable discussion event with Assembly Members in September and responded to the Welsh Assembly’s Finance Committee inquiryinto LTT in October 2016. 

Read the response

NAEA Propertymark Chief Executive Mark Hayward also gave evidence during a session of the Finance Committee, outlining the main challenges in implementing the Bill and offering recommendations to ensure it is put into operation effectively.

Calling for

  • Tax bands and rates more suited to the value of property in Wales in comparison to England and Scotland.
  • Replicate SDLT processes and systems to provide stability and ensure that procedures used to collect and manage the tax continue to be understood. 
  • Further guidance for when land transactions involve the acquisition of a chargeable interest where the land is partly in Wales and partly in England.
  • Wide reaching communication so people understand LTT is a replacement tax and not an additional one.
  • Retain current reliefs and exemptions under SDLT. 
  • Online calculators and guidance for the sector.    

Higher Rates of SDLT

Higher rates of Stamp Duty Land Tax on purchases of additional residential properties (including second homes) in Wales came into effect on 1 April 2016. These will continue under LTT.  

In August 2016 NAEA Propertymark responded to the Welsh Government’s plans in a joint statement with ARLA Propertymark and said:

“We are disappointed that the Welsh Government has decided to take this decision and followed the rest of the UK in implementing this punitive regime for Buy to Let landlords. We have been highly supportive of the new devolved tax regime in Wales precisely because it was a way that it could set its own tax agenda that works best for the housing sector in the region. In continuing with the surcharge, the Welsh Government is not making the most of its new powers in order to increase the supply of homes that Wales so desperately needs.”

Land Transaction Tax Rates and Bands

The new rates and bands for LTT were announced as part of the Welsh Government's Budget by the Cabinet Secretary for Finance and Local Government.

When the bands were first announced the starting threshold was set at £150,000, however, the Welsh Government increased this to £180,000 after the UK Government announced stamp duty land tax relief for first-time buyers in the 2017 Autumn Budget.

Through our lobbying, we called for a higher starting threshold and we’re pleased that the lower bands will benefit the market. However LTT creates further bands for properties in excess of £250,000, and these properties will now attract a higher rate of stamp duty land tax than they would have previously.

Purchase price

Stamp Duty percentage

£0 - £180,000

0%

£180,001 - £250,000

3.5%

£250,001 - £400,000

5%

£400,001 - £750,000

7.5%

£750,001 - £1.5m

10%

£1.5m +

12%

Confirmed LTT Rates and Bands from 1 April 2018

useful links

Useful Links

Welsh Revenue Authority (WRA)

The WRA will undertake all collection and management functions for LTT.

More info

Transitional
Guidance

WRA's are currently in the process of publishing their guidance for LTT. 

More info

Land Transaction Tax Calculator

Use WRA's calculator to work out how much LTT needs to be paid in a transaction.

More info

Cross-Border
Transactions

Guidance for properties that fall in more than one tax jurisdiction.

More info