Land Transaction Tax (LTT) in Wales - A Quick Guide

With effect from 1 April 2018, Stamp Duty Land Tax (SDLT) will cease to apply in Wales1. In its place, the Welsh government has introduced a new land transaction tax (LTT).

Complex transitional rules will also apply in certain circumstances, including where:

• Transactions commence before, but do not complete until after, 1 April 2018
• SDLT has already been paid on a transaction, but further tax becomes due after 1 April 2018 (for example, where a buyer completes a purchase after taking earlier possession of the site)

LTT is based on SDLT. It should (at least initially) operate in a broadly similar way, although there are some key differences including, in particular, the applicable rate of LTT.