What is LTT?
Land Transaction Tax (LTT) is the tax you need to pay on the first £225,000 of a new home in Wales. It used to be called Stamp Duty Land Tax (SDLT), but this was changed in April 2018.Why do we have to pay LTT?
It’s mainly for legal ownership reasons. When you buy a property, the change in land ownership has to be legally registered at the Land Registry, which is then evidence that your new Dandara home is officially all yours.
The Welsh Revenue Authority (WRA) is responsible for collecting Welsh Land Transaction Tax and will issue a certificate on receipt of the LTT payment due on the purchase of the property.
Who pays LTT and when? This is where your solicitor comes in. They will manage the transfer of funds to pay the tax (usually adding the amount to the sum you pay them before completing on your purchase.)
Land Transaction Tax rates and bands
It’s good to know how much Welsh Land Transaction Tax you’ll be paying before you look forward to moving in; take a look at the helpful table below:(Please note: For homes over £225,000 there is no LTT to pay on the first £225,000, then the following rates apply):
First time buyer? Read this.
It’s important to know that there is no first time buyers' relief on Land Transaction Tax in Wales. However, if you are buying your very first new Dandara home that’s got a maximum price tag of £225,000 in Wales, you’ll have no LTT to pay anyway. Wonderful news.Please, click here if you cannot see the calculator