Real Estate · Wales

Wales Stamp Duty (LTT) Rates & Bands 2026: What You'll Pay

Buying in Wales? You don't pay Stamp Duty Land Tax. Wales has its own Land Transaction Tax (LTT), collected by the Welsh Revenue Authority. It has the highest nil-rate band in the UK (£225,000) — but no first-time buyer relief, which makes it unusual.

The 2026/27 main residential LTT bands

LTT is marginal: each rate applies only to the part of the price within its band.

Price band	Rate
Up to £225,000	0%
£225,001 – £400,000	6%
£400,001 – £750,000	7.5%
£750,001 – £1.5m	10%
Above £1.5m	12%

Worked examples

• £300,000: 0% on £225k, 6% on £75k — total £4,500.
• £450,000: 6% on £175k (£10,500) + 7.5% on £50k (£3,750) — total £14,250.

No first-time buyer relief — but a high starting threshold

Unlike England (SDLT) and Scotland (LBTT), Wales offers no first-time buyer relief. The trade-off is the £225,000 nil-rate band that applies to everyone — higher than England's £125,000 or Scotland's £145,000 — so many first homes under £225,000 pay nothing anyway.

Higher rates for second homes

Additional properties and buy-to-let pay higher residential rates — a separate, steeper set of bands (revised on 11 December 2024), not a flat surcharge as in England or Scotland. Because it's a banded system, the effective rate varies with price. See our Wales higher-rates guide for the full 5%–17% band table and a worked example, or the Welsh Government LTT page.

The highest nil-rate band in the UK — and the trade-off

At £225,000, Wales has the most generous starting threshold of the three UK systems. England begins taxing at £125,000 and Scotland at £145,000. Because the Welsh threshold sits above the median Welsh house price, a large share of ordinary purchases pay nothing at all.

The trade-off is that Wales offers no first-time buyer relief whatsoever. That was a deliberate design choice: rather than target a relief at first-time buyers, the Welsh Government raised the universal threshold so high that a separate scheme was judged unnecessary. Buyers moving from England frequently expect a relief and are surprised to find none exists.

Where Wales becomes expensive

Above the threshold the rates climb faster than England's. The 6% band starting at £225,001 is steeper than the English 2% band at the equivalent point, so by the time you reach the upper end of the Welsh market the advantage has reversed. Wales is the cheapest of the three systems for a typical purchase and among the more expensive for an above-average one.

Additional properties: a separate schedule, not a surcharge

This is the structural difference that costs the most money. England adds five percentage points to each standard band; Scotland charges 8% on the whole price. Wales does neither — it applies a completely separate rate table that starts at the first pound, so a second home gets no nil-rate band at all.

The result is that Welsh second homes are expensive at the lower end relative to England. These higher rates have applied since 11 December 2024.

The ongoing cost beyond the purchase

Second homes are a live political issue in Wales, and the one-off tax is not the end of it. Local authorities can charge a council tax premium on second and long-term empty properties, in some areas at several hundred per cent of the standard bill. Anyone modelling a Welsh holiday let should treat that recurring charge as the larger number.

Practicalities

• LTT is collected by the Welsh Revenue Authority; the return is normally filed by your conveyancer on completion.
• It is payable in cash and cannot be added to the mortgage.
• Which system applies depends on where the property is, not where you live — a Welsh purchase by an English resident is still LTT.

Frequently asked questions

What are the Land Transaction Tax (LTT) rates in Wales for 2026/27?
Main residential LTT is marginal: 0% up to £225,000, 6% on £225,001–£400,000, 7.5% on £400,001–£750,000, 10% on £750,001–£1.5m, and 12% above £1.5m.

Is there first-time buyer relief in Wales?
No. Wales does not offer first-time buyer relief. Everyone benefits from the same £225,000 nil-rate band, whether or not they have owned a home before — one of the highest starting thresholds in the UK.

What are the higher rates for second homes in Wales?
Additional properties and buy-to-let pay higher residential LTT rates — a separate, steeper set of bands (changed on 11 December 2024) rather than a flat surcharge. Check the current higher-rate bands on gov.wales.

Is stamp duty different in Wales?
Yes. Wales does not use SDLT. It has its own Land Transaction Tax (LTT), collected by the Welsh Revenue Authority, with different bands. England and Northern Ireland use SDLT; Scotland uses LBTT.

Stamp duty across the UK

Buying elsewhere in the UK? Each nation taxes property purchases differently:

• England & NI — Stamp Duty Land Tax: SDLT guide · SDLT calculator
• Scotland — Land & Buildings Transaction Tax: LBTT guide · LBTT calculator

Compare all three side by side in our UK stamp duty & property tax hub.

Wales moved from SDLT to LTT on 1 April 2018. A Welsh purchase completed before then was charged SDLT — see the historic SDLT rates by year.

Sources

• GOV.WALES — Land Transaction Tax rates and bands (2026/27)
• Welsh Revenue Authority — LTT higher residential rates (revised 11 December 2024)

Figures as of June 2026 for Wales. Rates can change at Welsh Budgets — verify on gov.wales before exchanging. This is general information, not regulated financial advice (FCA).