Welsh government announces Land Transaction Tax changes
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 threshold | LTT rate |
|---|---|
| £0 - £225,000 | 0% |
| £225,000 - £400,000 | 6% |
| £400,000 - £750,000 | 7.5% |
| £750,000 - £1,500,000 | 10% |
| over £1,500,000 | 12% |
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 threshold | Higher LTT rate (for second properties) |
|---|---|
| up to and including £225,000 | 4% |
| over £225,000 up to and including £400,000 | 10% |
| over £400,000 up to and including £750,000 | 11.5% |
| over £750,000 up to and including £1,500,000 | 14% |
| over £1,500,000 | 16% |
More information on Land Transaction Tax can be found here.
Was this helpful?
Thanks for your feedback.
Recent blog posts
Autumn Statement 23: Overview for landlords
In the Autumn 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.
Essential Mortgage & Property Trends for Your 2024 Investment Outlook
Nick Sheppard, managing director of Framework Mortgaging, shares his insights on the mortgage market and key things for buy-to-let investors to consider heading into 2024.
What landlords need to know about the Renters’ Reform Bill
The upcoming Renters' Reform Bill, as discussed by Housing Secretary Michael Gove, aims to fundamentally alter the relationship between landlords and tenants in the UK. The bill is designed to offer tenants enhanced protection against unpredictable rent increases and other issues. In this blog, we’ll explore exactly what the proposed reforms mean for landlords.