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Stamp Duty in Wales: The Land Transaction Tax Explained

Written by Martha Lott

17th Sep 2021 (Last updated on 13th Feb 2024) 1 minute read

On 1^st April 2018, Stamp Duty was be replaced by Land Transaction Tax in Wales. But what exactly are the differences between Stamp Duty and Land Transaction Tax? Luckily, house removals experts Compare My Move are here to explain all.

We’ll explain the difference between the two rates, and explore how the changes affect every area in Wales. We’ll even highlight how much the average house buyer will save in every area of Wales, with the help of our newly updated Cost of Moving House Calculator.

Stamp Duty and Land Transaction Tax Compared
Land Transaction Tax vs Stamp Duty Rates
Second Home Owners and Land Transaction Tax

Stamp Duty and Land Transaction Tax Compared

Stamp Duty and Land Transaction Tax function the same, in that both have different rates for different proportions of a house’s price. Following the changes to Stamp Duty in England in the September 2022 mini-Budget, LTT was also changed in Wales. Previously homebuyers paid 0% on homes up to £180,000. The threshold is now at £225,000.

At the current average house price in Wales is £219,951 (as of July 2022), the average house buyer in Wales will not pay Land Transaction Tax.

In England, 0% Stamp Duty applied to homes up to £125,000 but this was raised to £250,000 as part of the government's mini-Budget. This means in terms of Stamp Duty tax, homebuyers in England are slightly better off. If you're looking to moving from England to Wales, this is something to take into consideration.

Land Transaction Tax vs Stamp Duty Rates

Since the changes to Stamp Duty in September 2022, LTT costs the buyer more than Stamp Duty. Previously those in Wales were better off when LTT was introduced.

Below we look at the differences in LTT in Wales and Stamp Duty in England and Northern Ireland.

Land Transaction Tax Rates

Portion of House Price	Land Transaction Tax Rate
Up to £225,000	0%
£250,001 to £400,000	6%
£400,001 to £750,000	7.5%
£750,001 to £1.5 million	10%
£1.5 million+	12%

Stamp Duty Tax Rates

Portion of House Price	Stamp Duty Rate
Up to £250,000	0%
£250,001 to £925,000	5%
£925,001 to £1.5 million	10%
£1.5 million+	12%

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Second Home Owners and Land Transaction Tax

Those looking to purchase a second home face a higher rate of Stamp Duty, and this is no different for Land Transaction Tax. In Wales, the rate is 4%, compared to 3% in England and Northern Ireland.

To learn more, read stamp duty on second home.

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