Property tax
Share this post
Property tax

Welsh government announces Land Transaction Tax changes

Chris Littlewood BA (Hons), ACCA
Client Manager

Following the Government’s mini budget announcement that stamp duty land tax (SDLT) would be cut significantly, the Welsh government has responded by announcing changes to Land Transaction Tax (LTT).

The Welsh Government has announced the threshold for paying Land Transaction Tax (LTT) is being increased from £180,000 to £225,000 with the change coming into force on 10 October 2022.

“The Welsh government's aim is to align LTT thresholds for paying taxes to the rising prices of homes.”

The main residential Land Transaction Tax (LTT) from 10 October 2022:

  • the nil rate band will increase to £225,000 (currently £180,000);

  • Previously, a rate of 3.5% applied between £180,000 and £250,000 and 5% between £250,000 and £400,000.

  • From 10 October 2022, a rate of 6% will apply between £225,000 and £400,000.

There are no changes to the higher rate of Land Transaction Tax that property investors pay at present on additional properties.

Main residential LTT rates from 10 October 2022

Price thresholdLTT rate
£0 - £225,0000%
£225,000 - £400,0006%
£400,000 - £750,0007.5%
£750,000 - £1,500,00010%
over £1,500,00012%

Higher residential LTT rates for buy-to-let

Individuals pay higher LTT rates when both of the following apply:

  • you buy a residential property worth £40,000 or more, and

  • you already own 1 or more other properties

Companies pay higher LTT rates when residential property is purchased:

  • with a value of £40,00 or more;

  • or an interest in a lease of more than 21 years left is purchased

Price thresholdHigher LTT rate (for second properties)
up to and including £225,0004%
over £225,000 up to and including £400,00010%
over £400,000 up to and including £750,00011.5%
over £750,000 up to and including £1,500,00014%
over £1,500,00016%

More information on Land Transaction Tax can be found here.

Expert Guide: stamp duty for buy to let landlordsWritten by our expert property accountants.

Was this helpful?

Chris Littlewood BA (Hons), ACCA
Client Manager

Recent blog posts

Property tax

Budget 2024: Furnished Holiday Let Tax Changes

In the March 2024 budget, the Chancellor announced the end of the Furnished Holiday Let (FHL) tax regime. This shock announcement has left investors worried about the future. In this blog, our Head of Tax unpacks the impact of the holiday let tax changes and advises how FHL owners can assess the impact on their investment strategies and plan ahead.

By Nadeem Raziq | 11/03/2024
Property tax

Spring Budget 24: Overview for landlords

In the Spring Statement, the Chancellor, Jeremy Hunt, set out his plan to promote growth. In this post, we look at the key tax changes that property investors need to know about.

By Hollie Chapman | 06/03/2024

Best UK rental yield hotspots for 2024

If you're planning to invest in rental properties in 2024, it's important to focus on locations that offer the highest rental yields. In this blog, we will share the top UK rental yield hotspots, along with tips to help you find the best investment opportunities.

By Hollie Chapman | 29/01/2024