Second Home and Buy-to-Let Land Transaction Tax in Wales
Wales does not add points to the main table. Additional-dwelling purchases are charged on a separate higher-rates table with its own thresholds.
Where a purchase leaves the buyer owning more than one dwelling, Wales switches the calculation to a separate higher-rates table rather than loading extra percentage points onto the main one. The higher table has its own bands and no tax-free slice: it charges from the first pound, with its lowest band running up to £180,000. The generous Welsh starting threshold that makes many main-rates purchases tax free therefore does not help an additional-property buyer. The test is what the buyer owns at the end of the day of completion, and a buyer genuinely replacing their only or main residence sits outside the higher rates.
A separate table, not a surcharge on the main one
England adds fixed percentage points to each of its standard bands, and Scotland adds a single charge on the whole price. Wales does neither. It publishes a distinct higher-rates band table for additional dwellings, with different thresholds from the main table, and the tax is worked out on that table in slices in the usual way. Comparing the two Welsh tables side by side at a given price shows exactly what an additional-dwelling purchase costs above a main-rates one.
The main nil-rate band does not carry over
The higher-rates table charges from the first pound, with its lowest band running up to £180,000, while the main table charges nothing until £225,000. An additional-property buyer therefore loses the benefit of the highest starting threshold in the UK and pays tax from the very first pound of the price, at levels where a main-rates buyer would pay nothing at all. This is the main reason Welsh additional-property figures move sharply away from Welsh main-rates figures.
Who is caught, and the refund route
Second homes, holiday homes and buy-to-let purchases are caught, along with most company and trust purchases and purchases made with someone who already owns a dwelling. A buyer replacing their only or main residence is not, provided the sale and the purchase line up. Where the new home completes before the old one sells, the higher rates are paid and then reclaimed once the previous main residence sells, if that falls inside the window the Welsh Revenue Authority allows.
What the surcharge costs in Wales
| Price | Home mover | Additional property | Extra | Effective rate |
|---|---|---|---|---|
| £150,000 | £0 | £7,500 | £7,500 | 5% |
| £200,000 | £0 | £10,700 | £10,700 | 5.3% |
| £250,000 | £1,500 | £14,950 | £13,450 | 6% |
| £300,000 | £4,500 | £19,950 | £15,450 | 6.7% |
| £400,000 | £10,500 | £29,950 | £19,450 | 7.5% |
| £500,000 | £18,000 | £42,450 | £24,450 | 8.5% |
| £750,000 | £36,750 | £73,700 | £36,950 | 9.8% |
| £1,000,000 | £61,750 | £111,200 | £49,450 | 11.1% |
The same second home across the UK
| Nation | Tax | Payable |
|---|---|---|
| England & Northern Ireland | SDLT | £30,000 |
| Scotland | LBTT | £45,350 |
| Wales | LTT | £29,950 |
Check your own price
LTT on a £400,000 property in Wales as an additional property. That is an effective rate of 7.5%.
Common questions
Does Wales add a surcharge to the normal rates?
No. Wales uses an entirely separate higher-rates band table for additional dwellings, with its own thresholds, rather than adding percentage points to the main table. The tax is then worked out on that table in slices.
Do I still get the high Welsh nil-rate band on a second home?
No. The higher-rates table has no tax-free slice: it charges from the first pound, so an additional-dwelling purchase pays tax at prices where a main-rates purchase, protected by the £225,000 threshold, would pay nothing.
Can I reclaim the higher rates if I sell my old home?
Where the purchase replaced your only or main residence and the previous home sells within the window the Welsh Revenue Authority allows, the higher-rate amount can be reclaimed. The claim is made to the Welsh Revenue Authority within the applicable time limit.
Source: Welsh Revenue Authority. Rates effective from 10 October 2022, verified 9 August 2026. Figures are computed from the published rate tables and checked against Welsh Revenue Authority’s own calculator.