Guide · 5 min read
Land Transaction Tax on a buy-to-let in Wales
Wales has its own tax on buying property, with its own table of higher rates for buy-to-lets. Here's how it works and how it compares with England.
In short
- In Wales you pay Land Transaction Tax (LTT) instead of stamp duty. It's run by the Welsh Revenue Authority.
- A buy-to-let pays the higher rates, which are a separate table, starting at 5% from the first pound.
- On a £200,000 buy-to-let that's £10,700.
- There's no first-time buyer relief, no extra charge for buyers living abroad, and the return is due within 30 days.
The rates today
Like stamp duty, LTT is charged in slices: each rate applies only to the part of the price in its band. The difference is that Wales doesn't add a surcharge to the main rates. Buy-to-lets, second homes and companies use a separate table of higher rates, with its own bands.
| Part of the price | Rate |
|---|---|
| Up to £180,000 | 5% |
| £180,001 to £250,000 | 8.5% |
| £250,001 to £400,000 | 10% |
| £400,001 to £750,000 | 12.5% |
| £750,001 to £1,500,000 | 15% |
| Above £1,500,000 | 17% |
| Part of the price | Rate |
|---|---|
| Up to £225,000 | 0% |
| £225,001 to £400,000 | 6% |
| £400,001 to £750,000 | 7.5% |
| £750,001 to £1,500,000 | 10% |
| Above £1,500,000 | 12% |
Rates in force on 10 October 2026. Below £40,000 the higher rates don't apply.
A worked example
You own your home and buy a £200,000 terrace in Swansea to let. Every slice is taxed at the higher rates:
| Slice of the price | Amount | Rate | Tax |
|---|---|---|---|
| Up to £180,000 | £180,000 | 5% | £9,000 |
| £180,001 to £200,000 | £20,000 | 8.5% | £1,700 |
| LTT to pay | £10,700 |
Because the higher rates start from the first pound, even a modest Welsh buy-to-let carries a real tax bill. Someone buying a £150,000 home to live in would pay £0, since the main rates start at nothing.
Wales or England?
For buy-to-lets, the two taxes come out close at most prices. Wales is a little cheaper on cheaper homes and dearer on expensive ones:
| Buy-to-let price | Wales (LTT) | England (stamp duty) |
|---|---|---|
| £150,000 | £7,500 | £8,000 |
| £250,000 | £14,950 | £15,000 |
| £400,000 | £29,950 | £30,000 |
| £600,000 | £54,950 | £50,000 |
So the tax on buying rarely decides between the two. Prices, rents and the rules for letting matter more.
Details that catch people out
- Border postcodes. Some postcode areas, such as CH, SY, LD and HR, cross the border. The property's address decides the tax, not the postcode, so check which side it's on. Our calculator asks when the postcode can't tell.
- The 30-day deadline. The LTT return and payment are due within 30 days of completion (England allows 14). Your solicitor normally files it.
- Moving home before you've sold. You pay the higher rates at first, and can usually claim the extra back if you sell your old home within 3 years.
- Companies. A company pays the higher rates on every purchase. Unlike England, Wales has no flat 17% rate for companies.
- Letting rules are Welsh too. Every landlord letting a home in Wales must register with Rent Smart Wales, and tenancies are "occupation contracts" under the Renting Homes (Wales) Act. Budget for both before you buy.
Every figure on this page is worked out by the NestInsights calculator, using the tax rules in force on 10 October 2026. The rules were checked against GOV.UK and the Welsh Revenue Authority on 8 October 2026. This guide explains how the rules work; it isn't financial or tax advice, so check your own case with an accountant or adviser.