Stamp duty in Wales – a landlord’s guide to Land Transaction Tax

If you want to buy a rental property in Wales, you’ll need to pay a type of stamp duty called Land Transaction Tax (LTT).

As with stamp duty in England, buyers of second properties in Wales have to pay higher rates of Land Transaction Tax than standard buyers.

Read on to find out how Land Transaction Tax works for landlords in Wales, including the latest rates and thresholds.

Stamp duty in Wales – what is Land Transaction Tax?

Land Transaction Tax replaced stamp duty in Wales during 2018. It’s a very similar system to stamp duty in England, but with different thresholds and rates.

LTT is paid by all buyers of land or property over a certain price, including landlords when they buy a rental property.

Buyers pay more LTT the higher the price of their property. It’s a progressive tax, meaning you pay an increasing tax rate for each portion of the property purchase price.

LTT can be a significant cost for buyers of second homes, so it’s important to factor it into your budget before you buy a rental property.

Having its own stamp duty system means Wales is able to set tax rates for buying property in line with average house prices in the country. For example, according to the official UK House Price Index, the average property price in Wales was £215,000 in December 2025. This is compared to £292,000 in England and £191,000 in Scotland. 

LTT is paid by the buyer of a property to the Welsh government, rather than to HMRC.

Read more: A complete guide to landlord tax

Stamp duty on Wales second homes – how does it work?

If you’re buying a home in Wales that’s not your main residence, you’ll need to pay a higher LTT rate.

Please note: the higher residential rates below have been in place for additional properties since 11 December 2024, rather than adding a flat surcharge.

Buyers of second properties start paying LTT at a lower threshold and at higher rates. This means landlords buying rental properties will need to pay higher tax bills than the average buyer. 

You can claim back the higher rate of LTT if you make a second home your main residence within three years of buying it (e.g. if you sell your existing main residence).

It’s also worth noting that you won’t need to pay Land Transaction Tax in the unlikely event you buy a second property for less than £40,000.

Land Transaction Tax rates – how much is stamp duty in Wales?

Here’s an overview of the LTT rates for buyers of second properties.

Higher Welsh Land Transaction Tax rates

Land Transaction Tax calculator

The Welsh government website has a stamp duty tax calculator you can use to work out how much Land Transaction Tax you could owe when buying a rental property.

How to pay Land Transaction Tax

When you buy a property, your solicitor can file your LTT return on your behalf. Solicitors and conveyancers are required to file these returns online.

The tax must be paid to the Welsh Revenue Authority (WRA) within 30 days of the day after completion.

Land Transaction Tax multiple dwellings relief

You can claim tax relief if you buy multiple properties in the same transaction.

This is known as multiple dwellings relief (MDR) and applies to properties such as:

• two neighbouring houses
• a house with a cottage in its grounds
• a house with an annexe

To be eligible for MDR, each dwelling in the transaction must be considered standalone. This means it will need:

• independent access
• a kitchen area
• a bathroom
• space to live and sleep

MDR is a partial tax relief. It can be calculated by dividing the total purchase price by the number of properties in the transaction. The LTT is then paid on the average figure..

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