Guide to Stamp Duty in Wales
If you buy a house or flat in Wales, you may need to pay a tax on your property purchase called Land Transaction Tax. This is the Welsh equivalent of Stamp Duty. Find out how much Land Transaction Tax you’ll need to pay for your property purchase in this guide.
Tax treatment depends on individual circumstances and may be subject to change in the future
Do I have to pay Stamp Duty in Wales?
Technically, Stamp Duty is only payable in England and Northern Ireland, but you may need to pay the Welsh equivalent of Stamp Duty, which is Land Transaction Tax. Land Transaction Tax works in a similar way to Stamp Duty Land Tax, but the rules and rates are set by the Welsh Government, not the UK government. You have to pay Land Transaction Tax in Wales if you buy a home worth more than £225,000 - even if you’re a first-time buyer.
How much will my Stamp Duty be in Wales?
The amount of Land Transaction Tax you’ll pay will depend on the price of your chosen property and whether you’re buying a main residence (home that you’ll live in) or an additional property. If you’re purchasing a home to live in, you’ll pay no Land Transaction Tax on any portion of the property up to £225,000. You’ll then pay 6% on any portion of the property between £225,001 and £400,000, and 7.5% on any portion between £400,001 and £750,000.
If you’re buying an additional property, such as a holiday home or investment property, you’ll face a bigger Land Transaction Tax bill than you would if buying your first home or selling your current property and moving to a bigger one.
The tables below illustrate the different rates you’ll pay at different price points. You can also use our Stamp Duty Calculator to see what you’ll pay.
One of the main things that sets Land Transaction Tax apart from England and Northern Ireland’s Stamp Duty Land Tax is that there are no exemptions for first-time buyers. In England and Northern Ireland, first-time buyers pay no Stamp Duty on the first £300,000 of their property purchase. In Scotland, first-time buyers pay no tax on the first £175,000 of the property purchase.
In Wales, a first-time buyer will pay the same amount of Land Transaction Tax as someone moving their way up the property ladder, assuming they’re buying a home for the same price. So, if you buy a £250,000 home in Wales, you’ll pay £1,500 in Land Transaction Tax regardless of whether it’s your first or second home. The good news is that there are thousands of homes in Wales that are priced below the £225,000 threshold! In fact, the average property in Wales is £238,483.
Is Stamp Duty changing in Wales in 2025?
Land Transaction Tax may change in Wales in 2025, but it’s likely that any changes will only apply to those purchasing an additional property. Last year, the Welsh Government announced an increase in rates as part of its budget for 2025 - 2026, but the most significant changes have already been introduced.
In December 2024, Land Transaction Tax rates increased for people buying a residential property worth £40,000 or more who already own one or multiple properties. However, first-time buyers and home movers with only one property haven’t seen an increase in LTT rates.
Learn more: Tembo’s guide to negotiating house prices
Good to know
If you’re trying to decide whether to buy in Wales or England, avoid making a decision based on tax alone. Homes are, on average, cheaper in Wales compared to England. So you may get more value for money in Wales, despite the bigger tax bill.
Learn more: How to reduce your Stamp Duty liability
You might also like: How has Stamp Duty changed?
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