You must pay LTT if you buy a property or land over a certain price threshold in Wales. The threshold is where the tax starts to apply.

The current LTT threshold is:

£225,000 for residential properties (if you do not own other property)

£225,000 for non-residential land and property

Based on the LTT rates and bands set by the Welsh Government.

There are different rules if you already own one or more residential properties, and you may need to pay the higher residential rates. However, if you’re replacing your main residence, the higher rates may not apply. See our guide to higher rates.

You pay the tax when you:

buy a freehold property

buy a new or existing leasehold

are transferred land or property in exchange for payment, for example, you take on a mortgage or buy a share in a house

LTT is a self-assessed tax. It’s the responsibility of the taxpayer to complete and submit an accurate tax return and pay any tax due.