Buying a second home in Wales (2026): LTT higher rates, refunds and holiday homes
A buyer who will own another home worth £40,000 or more pays Land Transaction Tax at the higher rates, from 5% to 17% on the whole price: £19,950 on a £300,000 home, against £4,500 at the main rates. A buyer replacing a main home pays the main rates if the old one was sold in the 3 years before, or can claim the difference back if it sells within 3 years after.
Key facts
- The higher rates replace the main rates on the whole price, from £40,000; they are not added on top.
- Higher rates since 11 December 2024: 5%, 8.5%, 10%, 12.5%, 15% and 17% in bands.
- Any home worth £40,000 or more counts, anywhere in the world, including a spouse's or civil partner's.
- Replacing a main home: main rates if the old one sold in the 3 years before; a refund if it sells within 3 years after.
- Councils can also charge up to 300% extra council tax on second homes, each choosing its own level.
When do the LTT higher rates apply?
When all three hold at the end of the completion day (Schedule 5 to the 2017 Act; Welsh Revenue Authority guidance LTTA/8020):
- The price is £40,000 or more.
- The buyer owns another dwelling, or a share of one, worth £40,000 or more, anywhere in the world. A spouse or civil partner’s home counts, and so does a co-buyer’s.
- The new home does not replace the buyer’s main home (see below).
Nationality and residence do not matter, and neither does what the new home is for: a holiday home, a holiday let and a buy to let are all treated alike.
How much are the higher rates?
The higher rates are a separate table, charged on the whole price instead of the main rates. They have applied since 11 December 2024, when each band went up by one point:
LTT higher residential rates
Charged in bands on the price: each slice is taxed at its own rate.
| Slice of the value | Rate on that slice |
|---|---|
| up to £180,000 | 5% |
| £180,000 to £250,000 | 8.5% |
| £250,000 to £400,000 | 10% |
| £400,000 to £750,000 | 12.5% |
| £750,000 to £1,500,000 | 15% |
| over £1,500,000 | 17% |
Applies when the buyer already owns a home; the buyer is not replacing a main home already sold by completion; the price is £40,000 or more.
Charged instead of the main rates, on the whole price, from £40,000, when at the end of the completion day you own another home (or a share of one) worth £40,000 or more anywhere in the world; a spouse or civil partner's home counts too. Not charged if the new home replaces your main home and you sold the old one in the 3 years before. If the old one is still unsold at completion, you pay the higher rates and can claim the difference back if you sell it within 3 years.
What a buyer who already owns a home pays, against a buyer who doesn’t:
| Price | Owns another home | Owns no other home |
|---|---|---|
| £200,000 | £10,700 | £0 |
| £300,000 | £19,950 | £4,500 |
| £500,000 | £42,450 | £18,000 |
The full bill on a £300,000 second home:
| Line | Kind | Amount | Estimate range | Share of price |
|---|---|---|---|---|
| LTT higher residential rates | Tax | £19,950 | 6.65% | |
| Conveyancing solicitor (market rate) | Fee, estimate | £1,000 | £500 to £1,500 | 0.33% |
| Local searches | Fee, estimate | £350 | £250 to £450 | 0.12% |
| HM Land Registry fee (Scale 1) | Fee | £150 | 0.05% | |
| Taxes | £19,950 | 6.65% | ||
| Fees, typical | £1,500 | £900 to £2,100 | 0.50% | |
| Total on top of the price | £21,450 | £20,850 to £22,050 | 7.15% |
What does a second home cost at different prices?
| Price | Taxes | Fees, typical | Total on top | Estimate range | Share of price |
|---|---|---|---|---|---|
| £100,000 | £5,000 | £1,390 | £6,390 | £5,790 to £6,990 | 6.39% |
| £150,000 | £7,500 | £1,450 | £8,950 | £8,350 to £9,550 | 5.97% |
| £200,000 | £10,700 | £1,450 | £12,150 | £11,550 to £12,750 | 6.08% |
| £250,000 | £14,950 | £1,500 | £16,450 | £15,850 to £17,050 | 6.58% |
| £300,000 | £19,950 | £1,500 | £21,450 | £20,850 to £22,050 | 7.15% |
| £400,000 | £29,950 | £1,500 | £31,450 | £30,850 to £32,050 | 7.86% |
| £500,000 | £42,450 | £1,500 | £43,950 | £43,350 to £44,550 | 8.79% |
| £750,000 | £73,700 | £1,645 | £75,345 | £74,745 to £75,945 | 10.05% |
What if the new home replaces your main home?
Moving home without selling first is the common case. The Welsh Revenue Authority’s guidance (LTTA/8090) has two routes:
- Old main home sold in the 3 years before the purchase: the main rates apply, as long as no other main home was bought in between. On a £300,000 home that is £4,500.
- Old main home sold after the purchase: the higher rates are paid at completion. If the old main home sells within 3 years of the purchase, the difference is refunded.
England has no time limit on the first route; Wales does.
How do you claim the higher rates back?
Through the Welsh Revenue Authority’s online refund form, by the buyer, their solicitor or conveyancer, or someone authorised to act for them. The guidance (LTTA/8120) gives two deadlines:
- amend the return within 12 months of the filing date; or
- make a repayment claim within 4 years of the day after the filing date.
On a £300,000 home the refund is the difference between £19,950 and £4,500. A longer period to sell can apply where the sale was held up by a fire-safety defect or an emergency restriction.
Does a second home in Wales cost more to own?
Often. Since 1 April 2023 Welsh councils can charge a council tax premium of up to 300% on second homes and long-term empty homes. Each council decides whether to charge one and at what level, and some homes are exempt, for example those whose planning conditions bar use as a main home. Check the council where the home is.
Is a second home cheaper in Wales or England?
At £300,000 they are close: £19,950 in Wales, £20,000 in England. Wales or England compares them at more prices.
What this guide does not cover
- Companies, which always pay the higher rates, and buying several homes at once.
- Annexes and the other exceptions in Schedule 5.
- Contracts exchanged before 11 December 2024 and completed later, which kept the previous higher rates.
- The Leasing Scheme Wales refund for homes let to councils.
Questions people ask
How much is LTT on a second home in Wales?
The higher rates apply to the whole price: £10,700 on a £200,000 home, £19,950 on £300,000 and £42,450 on £500,000. A buyer who owns no other home would pay £4,500 on the £300,000 home.
Do you pay LTT higher rates on a holiday home or buy to let in Wales?
Yes, if the buyer will own another home worth £40,000 or more at the end of the completion day. What the new home is used for does not matter: a holiday home, a holiday let and a buy to let all pay the higher rates.
Can you claim LTT higher rates back?
Yes, when the new home replaces your main home and the old main home is sold within 3 years of the purchase. Claim by amending the return within 12 months of the filing date, or by a repayment claim within 4 years of the day after the filing date.
Is there a surcharge on second homes in Wales besides LTT?
Council tax. Since 1 April 2023 Welsh councils can charge a premium of up to 300% on homes that nobody lives in as a main home, and each council decides whether to charge one and at what level.
Sources
- Higher rates for purchases of residential property: technical guidance (LTTA/8020 to 8270)Welsh Revenue Authority
- Claim a refund of Land Transaction Tax higher ratesWelsh Revenue Authority
Behind the figures
Every amount on this page is worked out by the engine from rule files that cite these pages.
- Which?: Conveyancing, what it is and what it costs (29 May 2026)Secondary source
- The Land Registration Fee Order 2024 (SI 2024/931)Official source