Wales to cut tax on average house sale

Wales will collect its first national taxes for almost 800 years from 1 April 2018 when the new Welsh version of stamp duty comes into force.

From 1 April 2018, the UK’s stamp duty land tax will be replaced by the land transaction tax (LTT) for residential and non-residential property purchases in Wales.

The current tax-free threshold for residential and non-residential homes in the UK is £125,000.

This will soon rise to £150,000 from 2018/19 tax year under LTT in Wales after the decision to scrap tax on homes costing between £125,000 and £150,000 was revealed in the Welsh Budget.

If an individual was to purchase a property in Wales from April 2018 for the average house price of £150,846, they will pay just £21.15 in LTT – compared to £516.92 in UK stamp duty.

However, at the other of end of the scale homeowners can expect to pay more. For instance, a housebuyer paying £500,000 for a home after April 2018 can expect to pay £17,500 in LTT – £2,500 more than existing stamp duty.

Both residential and non-residential transactions are subject to different rates, with a main rate and higher rate on additional residential properties, such as second homes and buy-to-let properties.

The higher rate is 3% above the main residential rate for each band:


Price threshold Rates
£0 to £150,000 0%
£150,000 to £250,000 2.5%
£250,000 to £400,000 5%
£400,000 to £750,000 7.5%
£750,000 to £1.5 million 10%
Above £1.5 million 12%


Price threshold Rates
£0 to £150,000 0%
£150,000 to £250,000 1%
£250,000 to £1 million 5%
Above £1 million 6%

Mark Drakeford, Welsh government finance secretary, said:

“Using these new powers, we have been able to introduce progressive and innovative tax plans, which will make a real difference to people’s lives, change behaviours and deliver improvements to all our communities.”

Contact us for stamp duty advice.

Awards and Accreditations

Get in touch

Get in touch

If you would like to see full details of our data practices please visit our Privacy Policy and if you have any questions please email