What are the higher rates of Land Transaction Tax in Wales?

The higher residential rates apply to additional properties (second homes and buy-to-let) in Wales. From 11 December 2024 they are: 5% up to £180,000, 8.5% to £250,000, 10% to £400,000, 12.5% to £750,000, 15% to £1.5m and 17% above. They are marginal, so each rate applies only to the slice of price in its band.

How much extra is the Wales second-home surcharge?

Unlike England and Scotland, Wales does not add a flat surcharge — it uses a separate, higher rate table for additional properties, sitting broadly 5 percentage points above the main rates. Each band rate rose by 1 percentage point on 11 December 2024.

Real Estate · Wales

Wales LTT Higher Rates 2026: Second Homes & Buy-to-Let

Q: Does Wales have first-time buyer relief?

No. Wales has no first-time buyer relief, but its main-rates nil-rate band of £225,000 is the highest of the three UK systems. The higher rates for additional properties have no nil-rate band.

By Akash Randive·Updated June 2026·6 min read

Wales taxes second homes differently from the rest of the UK. Instead of adding a flat surcharge to the main rates, it uses a completely separate higher residential rate table for additional properties — and those rates each rose by a percentage point on 11 December 2024. Here's what buy-to-let and second-home buyers in Wales actually pay.

The higher rates (from 11 December 2024)

These apply when you buy an additional residential property — a second home or buy-to-let. Like the main rates, they're marginal: each rate applies only to the slice of price within its band. Note the higher rates have no nil-rate band — you pay from the first pound.

Price band	Higher rate
Up to £180,000	5%
£180,001 – £250,000	8.5%
£250,001 – £400,000	10%
£400,001 – £750,000	12.5%
£750,001 – £1.5m	15%
Above £1.5m	17%

They sit broadly 5 percentage points above the main residential rates — the Welsh way of doing what England's 5% surcharge and Scotland's 8% ADS do.

Worked example: £250,000 second home

5% on the first £180,000 = £9,000
8.5% on the next £70,000 (£180k–£250k) = £5,950
Total LTT = £14,950

For comparison, the main rates on the same £250,000 main home would be just £625 (6% on the £25,000 above the £225,000 nil-rate band) — so the higher rates add roughly £14,300 for an additional property.

How the three nations compare on a £250,000 second home: Wales ≈ £14,950, Scotland ≈ £22,100 (8% ADS + LBTT), England ≈ £17,000 (standard £2,500 + 5% surcharge £12,500). Scotland is the harshest; Wales the lightest of the three at this price.

Calculate your Welsh LTT

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Frequently asked questions

What are the Wales higher rates?
5% to £180k, 8.5% to £250k, 10% to £400k, 12.5% to £750k, 15% to £1.5m, 17% above (from 11 Dec 2024).

Is it a flat surcharge?
No — Wales uses a separate higher-rate table, broadly 5pp above the main rates, with no nil-rate band.

Does Wales have first-time buyer relief?
No, but its £225,000 main-rates nil-rate band is the UK's highest.

Stamp duty across the UK

Wales — LTT guide · calculator
Scotland — ADS (8%) guide · calculator
England & NI — SDLT surcharges · calculator

Compare all three in the UK stamp duty hub.

Sources

GOV.WALES — Land Transaction Tax rates and bands (higher residential rates)
GOV.WALES — Higher residential rates increase from 11 December 2024
ICAEW — Residential land tax hike in Wales (Dec 2024)

Figures as of June 2026. Rates change at Welsh Budgets — verify on gov.wales before exchanging. General information, not regulated financial advice (FCA).

Akash Randive · Founder & Editor

Akash Randive founded and edits DecisionsCalc — an independent personal-finance enthusiast (not a licensed adviser) who builds the calculators and compiles the data from public sources, with AI assistance and full transparency. Every figure cites a primary source and an automated freshness check blocks stale data. See our editorial standards & methodology.

Cite this article

Randive, A. (2026). Wales LTT Higher Rates 2026: Second Homes & Buy-to-Let. DecisionsCalc. https://decisionscalc.com/articles/wales-ltt-higher-rates-second-homes/