New temporary changes to Land Transaction Tax in Wales 

Transactions with an effective date from 27 July 2020 to 30 June 2021

Land Transaction Tax (LTT) is payable when you buy or lease a building or land over a certain price in Wales. From 27 July, no tax is paid on the first £250,000 of a property, however, it increases to 5% up to £400,000, 7.5% up to £750,000, 10% up to £1,500,000 with any amount thereafter taxed at 12%. This will apply and will run until 30 June 2021. 

Transactions with an effective date between 1 April 2017 and 26 July 2020, and on or after 1 July 2021

Higher residential tax rates 

As of 22 December, a 4% surcharge applies to all transactions involving the purchase of an additional property when the purchase price is up to £180,000. This includes second homes and buy-to-let investments. The surcharge then increases to 7.5% on properties between £180,001 and £250,000, to 9% for properties between £250,001 and £450,000, and to 11% on properties within the threshold of £450,001 to £750,000. A 14% surcharge applies to properties between £750,001 and £1.5m and a 16% surcharge applies to properties over £1.5m.  

Specific first-time buyer relief is not currently available under the LTT system. 

When you buy a residential property (freehold or leasehold) on or after 27 July, the following rates will apply to the portion of the price you pay in each band. 

LTT does not apply to rents payable under a lease for residential property.

When you buy a residential property and you already own one or more residential properties you may need to pay the higher residential rates.
 

If you are replacing your main residence, the higher rates may not apply.