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Stamp Duty on a Second Home — Wales (LTT Higher Rates)

Wales charges separate higher rates from the first pound, not a surcharge. Both tables verbatim from gov.wales, plus the refund rule.

Verified Aug 2026Primary sourcesTax year 2026/27

The short answer

In Wales a second home or buy-to-let pays Land Transaction Tax at the higher residential rates — a separate band table starting at 5% from the first pound, not a surcharge on top of the main rates. There is no first-time-buyer relief in Wales, and the higher rates apply from £40,000 upwards.

Wales is the nation most often calculated wrongly: people apply an English-style surcharge to the Welsh main rates. LTT does not work like that — the higher rates are their own table, read verbatim from gov.wales.

Main residential LTT bands (your only home)

Portion of priceRate
£0 – £225,0000%
£225,001 – £400,0006%
£400,001 – £750,0007.5%
£750,001 – £1,500,00010%
£1,500,001 and above12%

Higher residential rates (second homes, buy-to-let, companies)

Portion of priceRate
£0 – £180,0005%
£180,001 – £250,0008.5%
£250,001 – £400,00010%
£400,001 – £750,00012.5%
£750,001 – £1,500,00015%
£1,500,001 and above17%
ScenarioLikely treatment
Buy-to-let while you own your homeHigher rates
Second home / holiday homeHigher rates
Replacing your main residence — old one sold firstMain rates
Old main residence sold within 3 yearsHigher rates paid, then refund claimed from the WRA
First-time buyerNo relief in Wales — main rates apply to a first home

Worked example — £300,000 buy-to-let

StepAmount
Main-rate LTT (if it were your only home)£4,500
Higher-rate LTT on £300,000 (second home / buy-to-let)£19,950
Extra cost of the higher rates£15,450

Council tax premiums

Separately from LTT, Welsh councils may charge up to a 300% council tax premium on second homes and long-term empty properties — a running cost that, for a let property between tenancies, is an allowable expense.

gov.wales Land Transaction Tax rates and bands — main table (from 10 Oct 2022) and higher-rates table (from 11 Dec 2024) read verbatim; Welsh Revenue Authority refund guidance. Checked 2026-08-29; re-checked 31 Aug 2026.

FAQs

Quick answers

Higher residential rates: 5%, 8.5%, 10%, 12.5%, 15%, 17% across the bands starting from the first pound. On £300,000 that is £19,950.

No. Wales uses a separate higher-rate table rather than adding a flat percentage to the main rates.

No — Wales has no first-time-buyer relief. The main-rate nil band (£225,000) applies to everyone buying their only home.

Yes if the property became your main residence and you sold the previous one within three years — claim from the Welsh Revenue Authority.