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Wrexham

Call 01978 291000

10 Grosvenor Road, Wrexham, LL11 1SD



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Chester

Call 01244 312166

2 Vicars Lane, Chester CH1 1QX



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Llanrwst

Call 01492 641222

Bank Buildings, Llanrwst, Conwy, LL26 0LS



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Land Transaction Tax replaces Stamp Duty

Last month the rates for Land Transaction Tax (“LTT”) in Wales were announced. Land Transaction Tax is due to replace Stamp Duty Land Tax (“SDLT”) in Wales from April 2018. LTT will operate in a similar fashion to SDLT and is calculated based on the “consideration” (generally the price paid) for the land in question. The rates are slightly different to rates in England and are as follows:-

Residential property transactions:

Price threshold Main residential rates
£0- £150,000 0 %
£150,000- £250,000 2.5%
£250,000- £400,000 5%
£400,000- £750,000 7.5%
£750,000- £1.5 million 10%
£1.5million-plus 12%


Non-residential property transactions:

Price threshold Rates
£0- £150,000 0%
£150,000- £250,000 1%
£250,000- £1 million 5%
£1 million-plus 6%


Non-residential lease rates:

Net present value of lease thresholds Rates
£0- £150,000 0%
£150,000- £2 million 1%
£2 million plus 2%


For residential purchases which attract LTT and SDLT, there is an additional 3% charged for individuals who own at least one residential property and are not replacing their main residence.

The main difference between the LTT rates and SDLT rates is that cheaper residential property in Wales will not attract as much tax as the equivalent in England. For non-residential property transactions, the LTT rates are almost identical to SDLT except for purchases in excess of £1,000,000 which attract an additional 1% tax.

Should you wish to discuss any matters relating to this article please contact Ben Whiting Trainee Solicitor on 01978 291000 or by email [email protected]

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The professional rules relating to solicitors' firms, including the Code of Conduct can be accessed on the website of the Solicitors Regulation Authority at www.sra.org.uk

Allington Hughes Law is a trading name of Allington Hughes Limited. Registered office is 10 Grosvenor Road, Wrexham LL11 1SD

Registered in England and Wales. Company registration number 07831162.

Authorised and regulated by the Solicitors Regulation Authority number 597867

V.A.T. registration number 166 8213 93