Wales: Land transaction tax (LTT)—chargeable consideration and rates of LTT
Produced in partnership with Andrew Evans of Geldards LLP
Wales: Land transaction tax (LTT)—chargeable consideration and rates of LTT

The following Tax guidance note Produced in partnership with Andrew Evans of Geldards LLP provides comprehensive and up to date legal information covering:

  • Wales: Land transaction tax (LTT)—chargeable consideration and rates of LTT
  • How is LTT calculated?
  • Chargeable consideration
  • Money and money’s worth
  • VAT
  • Postponed consideration
  • Apportionment
  • Exchanges
  • Partition of land
  • Non-monetary consideration
  • more

Land transaction tax (LTT) replaced stamp duty land tax (SDLT) in Wales with effect from 1 April 2018.

This Practice Note examines how LTT is calculated, the meaning of chargeable consideration for LTT purposes and the rates. Where relevant, comparisons between LTT and SDLT are highlighted. The Practice Note expands on the basics of LTT set out in the Practice Note: Wales: Land transaction tax (LTT)—the basics.

LTT is set out in the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (LTTADT(W)A 2017). Statutory references are to the LTTADT(W)A 2017 unless stated otherwise.

How is LTT calculated?

LTT is charged on the acquisition and disposal of an interest in freehold or leasehold land. LTT is charged on not just the purchase of freehold land or on the grant of a lease (which would be the creation of an interest) but also on the release of an interest, such as the release of a restrictive covenant or on the variation of an interest, such as a variation of a lease.

Freehold acquisition

In the case of a freehold acquisition, LTT is charged as a percentage of the consideration paid or deemed to be paid for the transaction above a zero rate threshold.

The rates of LTT are set out in regulations passed by the Welsh Government. For details of the rates and