Welsh Government
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Welsh Government draft Budget changes to Land Transaction Tax and Landfill Disposals Tax
The Welsh Government has announced changes to rates for Land Transaction Tax (LTT) and Landfill Disposals Tax (LDT) as part of the draft Budget for 2025 to 2026. These changes are set by the Welsh Government. They were announced on 10 December 2024.
Land Transaction Tax
The following changes have been made to LTT:
Changes for higher rates residential property transactions in Wales
The new rates are:
| Band | Rate |
|---|---|
| The portion up to and including £180,000 | 5% |
| The portion over £180,000 up to and including £250,000 | 8.5% |
| The portion over £250,000 up to and including £400,000 | 10% |
| The portion over £400,000 up to and including £750,000 | 12.5% |
| The portion over £750,000 up to and including £1,500,000 | 15% |
| The portion over £1,500,000 | 17% |
The tax rates and bands for main residential rates and non-residential transactions are unchanged from those effective from 22 December 2020.
Rates and bands
We’ve updated the page on rates and bands set by the Welsh Government, and our digital calculators.
You can use our LTT calculator to help you work out how much tax to pay. The calculator will use the date you enter to work out which rates and bands apply.
Transitional rules
If the buyer completes on buying a property:
- before 11 December, you pay the previous rates of tax
- on or after 11 December, you pay the new rates of tax
In most cases, the previous rates can be used where contracts are exchanged before 10 December 2024, but the purchase is not completed until on or after this date.
We have transitional guidance for the December 2024 higher residential rates change. This expands on the regulations and covers which rates will apply to a transaction.
How to file a return using transitional rules
If you’re filing a return online, you should:
- disagree with the tax calculation generated
- enter the tax due calculated using the previous rates and bands. You can use our LTT tax calculator to help calculate the tax due. But you should use the exchange date as the effective date so that the calculation is made using the correct rates and bands
- select ‘transitional rules apply’ as the reason for disagreeing with the tax calculation and explain how you came to your calculation
If you’re filing a paper return under question 100, please select ‘transitional rules apply’ if you've used the transitional rules to calculate the tax based upon the rates for LTT before 11 December 2024.
Landfill Disposals Tax
Changes to Landfill Disposals Tax rates in Wales
From 1 April 2025 the Landfill Disposals Tax rates are changing. The new rates are:
| Landfill Tax rates | Rate from 1 April 2025 |
|---|---|
| Standard rates (per tonne) | £126.15 |
| Lower rates (per tonne) | £6.30 |
| Unauthorised Disposal rate (per tonne) | £189.25 |
We’ve updated the page on the LDT rates set by the Welsh Government.
Support and information
If you have a transaction query, please contact us.
Original article link: https://www.gov.wales/welsh-government-draft-budget-changes-land-transaction-tax-and-landfill-disposals-tax
