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Stamp Duty in Wales: The Land Transaction Tax Explained

Martha Lott

Written by

17th Sep 2021 (Last updated on 25th Jan 2023) 1 minute read

On 1st 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.

This article will cover the following:
  1. Stamp Duty and Land Transaction Tax Compared
  2. Land Transaction Tax vs Stamp Duty Rates
  3. 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.

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 PriceLand Transaction Tax Rate
Up to £225,0000%
£250,001 to £400,0006%
£400,001 to £750,0007.5%
£750,001 to £1.5 million10%
£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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Martha Lott

Written by Martha Lott

Having guest authored for many property websites, Martha now researches and writes articles for everything moving house related, from remortgages to conveyancing costs.