Real Estate · Wales

Wales LTT Higher Rates 2026: Second Homes & Buy-to-Let

Wales taxes second homes differently from the rest of the UK. Instead of adding a flat surcharge to the main rates, it uses a completely separate higher residential rate table for additional properties — and those rates each rose by a percentage point on 11 December 2024. Here's what buy-to-let and second-home buyers in Wales actually pay.

The higher rates (from 11 December 2024)

These apply when you buy an additional residential property — a second home or buy-to-let. Like the main rates, they're marginal: each rate applies only to the slice of price within its band. Note the higher rates have no nil-rate band — you pay from the first pound.

Price band	Higher rate
Up to £180,000	5%
£180,001 – £250,000	8.5%
£250,001 – £400,000	10%
£400,001 – £750,000	12.5%
£750,001 – £1.5m	15%
Above £1.5m	17%

They sit broadly 5 percentage points above the main residential rates — the Welsh way of doing what England's 5% surcharge and Scotland's 8% ADS do.

Worked example: £250,000 second home

• 5% on the first £180,000 = £9,000
• 8.5% on the next £70,000 (£180k–£250k) = £5,950
• Total LTT = £14,950

For comparison, the main rates on the same £250,000 main home would be just £625 (6% on the £25,000 above the £225,000 nil-rate band) — so the higher rates add roughly £14,300 for an additional property.

The structural difference from England and Scotland

England bolts a flat 5% onto each standard band. Scotland charges an 8% Additional Dwelling Supplement on the whole price. Wales does neither — it applies a completely separate rate schedule that begins at the first pound, with no nil-rate band at all.

That design choice is what makes Welsh second homes expensive at the lower end. A £180,000 additional property in Wales attracts 5% from pound one, where the same purchase in England would pay the 5% surcharge only on the portion above the standard thresholds.

The higher residential rates

Portion of price	Higher rate
Up to £180,000	5%
£180,001 – £250,000	8.5%
£250,001 – £400,000	10%
£400,001 – £750,000	12.5%
£750,001 – £1.5m	15%
Above £1.5m	17%

These rates have applied since 11 December 2024. On a £250,000 additional property the bill is £14,950, against £1,500 for the same property as a main residence — roughly ten times more.

When the higher rates apply

• You end up owning more than one dwelling at the end of the day of purchase, and the property costs £40,000 or more.
• Buying before your existing home sells triggers them — but the extra is reclaimable if you sell the previous main residence within the statutory period.
• Inherited shares in a property can count toward the "more than one dwelling" test, which catches people out unexpectedly.
• Companies and most corporate purchasers pay the higher rates regardless of how many dwellings are involved.

Second homes are a live political issue in Wales, and councils can additionally charge a council tax premium of up to several hundred per cent on long-term empty and second properties — an ongoing cost well beyond the one-off duty.

Frequently asked questions

What are the higher rates of Land Transaction Tax in Wales?
The higher residential rates apply to additional properties (second homes and buy-to-let) in Wales. From 11 December 2024 they are: 5% up to £180,000, 8.5% to £250,000, 10% to £400,000, 12.5% to £750,000, 15% to £1.5m and 17% above. They are marginal, so each rate applies only to the slice of price in its band.

How much extra is the Wales second-home surcharge?
Unlike England and Scotland, Wales does not add a flat surcharge — it uses a separate, higher rate table for additional properties, sitting broadly 5 percentage points above the main rates. Each band rate rose by 1 percentage point on 11 December 2024.

Does Wales have first-time buyer relief?
No. Wales has no first-time buyer relief, but its main-rates nil-rate band of £225,000 is the highest of the three UK systems. The higher rates for additional properties have no nil-rate band.

Stamp duty across the UK

• Wales — LTT guide · calculator
• Scotland — ADS (8%) guide · calculator
• England & NI — SDLT surcharges · calculator

Compare all three in the UK stamp duty hub.

On the way out, a second home is also within capital gains tax: what CGT costs on a UK property sale.

Sources

• GOV.WALES — Land Transaction Tax rates and bands (higher residential rates)
• GOV.WALES — Higher residential rates increase from 11 December 2024
• ICAEW — Residential land tax hike in Wales (Dec 2024)

Figures as of June 2026. Rates change at Welsh Budgets — verify on gov.wales before exchanging. General information, not regulated financial advice (FCA).