Wales v England – What’s occurring?

Purchasing a property in England attracts Stamp Duty Land Tax (SDLT), in Wales you will pay Land Transaction Tax (LTT) but the name is not the only difference.

Below we have listed some of the key differences between LTT and SDLT.

Category	LTT (Land Transaction Tax)	SDLT (Stamp Duty Land Tax)
Responsible authority	The Welsh Revenue Authority (WRA).	His Majety’s Revenue and Customs (HMRC).
Rates and Bands	Set by the Welsh Government. Click here to see the current rates. (link to website)	Set by the UK Government. Click here to see the current rates. (link to website)
Filing and payment date	The LTT return should be filed and the tax paid within 30 days of the effective date of the transaction.	The SDLT return should be filed and the tax paid within 14 days of the effective date of the transaction.
Higher Rates – Intermediate Transaction Rule on Welsh residential property.	If a previous main residence is sold, the purchase of a new or replacement main residence is not charged at higher rates. However, if another property (e.g. buy-to-let) is bought in between the sale of the previous main residence and the purchase of the replacement and was taxed at the standard rates (due to the purchaser owning no other property at the time of purchase), the higher rates may retrospectively apply to that interim property due to the ‘look back’ rule.”	No intermediate transaction rule applies.
Multiple Dwelling Relief (MDR)	From 7 February 2025 MDR only applies to purchases of two or more dwellings in the same or a linked transaction provided neither of the dwellings is subsidiary to the other.	Abolished for all purchases on or after 1 June 2024.
MDR 3 year clawback provision	There is no clawback provision if the number of dwellings is reduced in the first 3 years.	MDR was subject to a clawback if the number of dwellings was reduced within the first 3 years.
First Time Buyers Relief (FTBR)	FTBR is not available. A 0% rate applies to purchases up to £225,000.	First-time buyer relief is available. The 0% rate applies to purchases up to £125,000, or up to £300,000 for first-time buyers.
Definition of Residential and Non-Residential property or land	LTT uses its own interpretation guidance set by the Welsh Government.	SDLT uses its own interpretation guidance set by the UK Government.
Company purchases of residential property	The LTT does not differentiate (discriminate) against company purchases of residential property.	Company purchases of residential property worth in excess of £500,000 are subject to a flat rate of 17% SDLT unless an exemption applies.
Annual Tax on Enveloped Dwellings (ATED)	There is no ATED charge.	Company purchases of residential property worth in excess of £500,000 are subject to the ATED charge unless an exemption applies.
Enquiry period in relation to a return or amendment	12 months from the date the return was due to be filed or, if later, the date on which it was actually received. If the return is amended by the Taxpayer the enquiry period is 12 months from the date of the amendment.	9 months from the date the return was due to be filed or, if later, the date on which it was actually received. If the return is amended by the Taxpayer the enquiry period is 9 months from the date of the amendment.
Anti-Avoidance and Compliance	A general anti-avoidance rule applies to all LTT reliefs, allowing the WRA to counter artificial tax avoidance.	Anti-avoidance rules under Sections 75A-C of the Finance Act 2003 apply, targeting specific schemes.