Wales: Land transaction tax (LTT)—the basics
Produced in partnership with Andrew Evans of Geldards LLP

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

  • Wales: Land transaction tax (LTT)—the basics
  • Background
  • Commencement and transitional provisions
  • Contract exchanged before 17 December 2014
  • Contract exchanged after 17 December 2014, substantially performed before 1 April and completed after 1 April
  • Lease and overlap relief
  • Leases and holding over
  • Assignment of a lease granted subject to a relief
  • Variation of lease due to rent increase
  • Alternative finance arrangements
  • More...

Wales: Land transaction tax (LTT)—the basics

This Practice Note provides an overview of land transaction tax (LTT) which replaced stamp duty land tax (SDLT) in Wales with effect from 1 April 2018. Three other Practice Notes focus in more detail on particular aspects of the tax:

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

  2. Wales: Land transaction tax (LTT)—particular transactions and tax payers, and

  3. Land transaction tax (LTT)—administration and compliance


The Wales Act 2014 contains provisions for the disapplication of SDLT in Wales from 1 April 2018 and the ability for Welsh Government to introduce its own tax on transactions in land in Wales.

Legislation for LTT is contained in the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (LTTADT(W)A 2017) which received Royal Assent on 24 May 2017. Legislation for the administration of taxes in Wales and the formation of the Welsh Revenue Authority (WRA) is contained in the Tax Collection and Management (Wales) Act 2016 (TCM(W)A 2016) which received Royal Assent on 20 April 2016. Statutory references are to the LTTADT(W)A 2017 unless stated otherwise.

Welsh Government undertook extensive consultation with stakeholders regarding the implementation of LTT. One key message of stakeholders was to retain as much as possible of the elements of the SDLT regime. Therefore, SDLT practitioners will feel ‘at home’ with much of LTT.

Commencement and transitional provisions

LTT came

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