{"id":26829,"date":"2024-11-08T16:10:01","date_gmt":"2024-11-08T16:10:01","guid":{"rendered":"https:\/\/www.simplybusiness.co.uk\/?post_type=knowledge&p=26829"},"modified":"2026-03-03T15:58:51","modified_gmt":"2026-03-03T15:58:51","slug":"stamp-duty-wales-guide","status":"publish","type":"knowledge","link":"https:\/\/www.simplybusiness.co.uk\/knowledge\/landlord-tax\/stamp-duty-wales-guide\/","title":{"rendered":"Stamp duty in Wales \u2013 a landlord\u2019s guide to Land Transaction Tax"},"content":{"rendered":"\n

If you want to buy a rental property in Wales, you\u2019ll need to pay a type of stamp duty called Land Transaction Tax (LTT).<\/p>\n\n\n\n

As with stamp duty in England, buyers of second properties in Wales have to pay higher rates of Land Transaction Tax than standard buyers.<\/p>\n\n\n\n

Read on to find out how Land Transaction Tax works for landlords in Wales, including the latest rates and thresholds.<\/p>\n\n\n\n

Stamp duty in Wales \u2013 what is Land Transaction Tax?<\/h2>\n\n\n\n

Land Transaction Tax replaced stamp duty in Wales during 2018. It\u2019s a very similar system to stamp duty in England<\/a>, but with different thresholds and rates.<\/p>\n\n\n\n

LTT is paid by all buyers of land or property over a certain price, including landlords when they buy a rental property.<\/p>\n\n\n\n

Buyers pay more LTT the higher the price of their property. It\u2019s a progressive tax, meaning you pay an increasing tax rate for each portion of the property purchase price.<\/p>\n\n\n\n

LTT can be a significant cost for buyers of second homes, so it\u2019s important to factor it into your budget before you buy a rental property.<\/p>\n\n\n\n

Having its own stamp duty system means Wales is able to set tax rates for buying property in line with average house prices in the country. For example, according to the official UK House Price Index, the average property price in Wales was \u00a3215,000 in December 2025. This is compared to \u00a3292,000 in England and \u00a3191,000 in Scotland.\u00a0<\/p>\n\n\n\n

LTT is paid by the buyer of a property to the Welsh government, rather than to HMRC.<\/p>\n\n\n\n

Read more:<\/strong> A complete guide to landlord tax<\/a><\/p>\n\n\n\n

Stamp duty on Wales second homes \u2013 how does it work?<\/h2>\n\n\n\n

If you\u2019re buying a home in Wales that\u2019s not your main residence, you\u2019ll need to pay a higher LTT rate.<\/p>\n\n\n\n

Please note: the higher residential rates below have been in place for additional properties since 11 December 2024, rather than adding a flat surcharge.<\/p>\n\n\n\n

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Buyers of second properties<\/a> start paying LTT at a lower threshold and at higher rates. This means landlords buying rental properties will need to pay higher tax bills than the average buyer. <\/p>\n\n\n\n

You can claim back the higher rate of LTT if you make a second home your main residence within three years of buying it (e.g. if you sell your existing main residence).<\/p>\n\n\n\n

It\u2019s also worth noting that you won\u2019t need to pay Land Transaction Tax in the unlikely event you buy a second property for less than \u00a340,000.<\/p>\n\n\n\n

Land Transaction Tax rates \u2013 how much is stamp duty in Wales?<\/h2>\n\n\n\n

Here\u2019s an overview of the LTT rates for buyers of second properties.<\/p>\n\n\n\n

Higher Welsh Land Transaction Tax rates<\/h3>\n\n\n\n
Property price<\/strong><\/td>Second home LTT rate<\/strong><\/td><\/tr>
Up to \u00a3180,000<\/td>5%<\/td><\/tr>
\u00a3180,001 to \u00a3250,000<\/td>8.5%<\/td><\/tr>
\u00a3250,001 to \u00a3400,000<\/td>10%<\/td><\/tr>
\u00a3400,001 to \u00a3750,000<\/td>12.5%<\/td><\/tr>
\u00a3750,001 to \u00a31.5 million<\/td>15%<\/td><\/tr>
Above \u00a31.5 million<\/td>17%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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Landlord Land Transaction Tax example<\/h2>\n\n\n\n

If a landlord buys a rental property in Wales for \u00a3375,000 they\u2019ll pay:<\/p>\n\n\n\n