Higher rate Land Transaction Tax

As with other parts of the UK, a higher rate of LTT applies when the buyer already owns another property. The good news is that this does not apply if you are selling your main residence to purchase another main residence and already own another property, for example, a buy to let. As a landlord this is good if you move house as you can avoid the higher rate of LTT. However, purchasing a house to rent out, or indeed any residential property, will incur a minimum charge of 4%, unless the property is worth less than £40,000.

The table shows the prevailing rates of higher rate LTT. There are numerous scenarios regarding the higher rate of LTT and if you believe that you will be affected, take a look at the Welsh Government website where there are numerous guides. You can also speak to a solicitor or conveyancer for more help. For the majority of people though, the most important fact is that you do not pay higher rate LTT if you own a buy to let property or second home so long as you are selling your main home to purchase another property that you will live in.