Wales: Land transaction tax (LTT)—chargeable consideration and rates of LTT

Copyright © 2025 LexisNexis
Produced in partnership with Andrew Evans of Geldards LLP
Practice notes

Wales: Land transaction tax (LTT)—chargeable consideration and rates of LTT

Copyright © 2025 LexisNexis

Produced in partnership with Andrew Evans of Geldards LLP

Practice notes
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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

Andrew Evans
Andrew Evans

Partner, Geldards LLP

Andrew has spent his career advising owner managers and SME businesses/companies on their tax affairs. In common with many tax advisers in regional law firms, Andrew’s practice covers a wide range of tax areas, from Corporate M&A support, company restructuring and reorganisations including demergers, share schemes and property taxes including vat, SDLT and LTT. Andrew has also developed a specialism advising business owners and companies on selling their company to an Employee Ownership Trust.

Andrew was a member of the Welsh Government’s Tax Advisory Group which assisted Welsh Government develop the LTT regime.

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Stamp duty definition
What does Stamp duty mean?

A transfer tax payable on documents and instruments, rather than in respect of a transaction. It is most commonly encountered on the transfer of UK certificated shares, where the stock transfer form is the instrument that is stamped.

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