Land Transaction Tax (LTT) is paid when you buy or lease property or land over a certain value in Wales.
For residential property, (a property you wish to live in) the tax only applies to a property that costs more than £180,000. If the property you’re buying is worth more than £180,000 you’ll be charged Land Transaction Tax based on the value of the property and pre-set bands that indicate the percentage of tax you’ll pay.
It’s worth mentioning that first-time buyers don’t get any exemptions from Land Transaction Tax.
When purchasing second homes and buy-to-let properties, the Land Transaction Tax is different. You’ll be charged 3% more LTT than the main residential rates, but only if the property costs more than £40,000- if you’re purchasing a second property under that value then the tax won’t apply.
For commercial property, Land Transaction Tax applies to properties worth more than £150,000. For commercial properties worth more than £150,000 the Land Transaction Tax will be charged based on the value of the property and pre-set bands that indicate the percentage of tax you pay.
General Mortgage FAQ