LTT returns and deadlines in Wales

The buyer in a notifiable Welsh property transaction must file a Land Transaction Tax return with the Welsh Revenue Authority (WRA) within 30 days beginning with the day after the effective date, usually completion, and pay the tax by the same date. A return is needed even where no tax is due unless an exception applies. A late return costs £100 at once, with further penalties of the greater of £300 and 5% of the tax at six and twelve months, and late payment brings separate 5% penalties and interest.

Who has to file an LTT return?

Section 44 of the Land Transaction Tax and Anti avoidance of Devolved Taxes (Wales) Act 2017 (LTTA) puts the duty on the buyer. If the transaction is chargeable, the return must include a self assessment, meaning the buyer’s own calculation of the tax due on the information in the return.

In practice the conveyancer files. The WRA’s guidance on GOV.WALES says solicitors and conveyancers must file online, while a buyer acting without one must contact the WRA for a paper return. The return goes to the WRA, not HMRC, because LTT replaced SDLT in Wales from 1 April 2018. Our overview of LTT in Wales explains the tax itself, and SDLT, LBTT and LTT compared sets the three regimes side by side.

Which transactions need a return?

Section 45 makes the acquisition of a major interest notifiable unless one of the exceptions in section 46 applies. A lesser interest is notifiable only if tax is chargeable above 0%, or would be but for a relief. The main exceptions in section 46 are:

• a transaction exempt from charge under Schedule 3 to the Act;
• a purchase other than a lease where the consideration, with any linked transactions, is less than £40,000;
• the grant of a lease for less than 7 years where the consideration does not exceed the zero rate threshold;
• the grant of a lease for 7 years or more where the consideration other than rent is less than £40,000 and the annual rent is less than £1,000;
• the assignment or surrender of a lease, on similar tests depending on whether it was originally granted for 7 years or more.

A purchase that qualifies for a relief, so that no tax is payable, is still notifiable. The relief is claimed in the return. See LTT reliefs.

When exactly is the 30 day deadline?

Section 44(2) says the return must be made before the end of the period of 30 days beginning with the day after the effective date. The WRA describes this as within 30 days of the day after completion, or other effective date. Count the day after completion as day one.

Illustration only. Completion takes place on 3 March. Day one is 4 March, so the 30th day, and the last day to file, is 2 April.

This is more generous than England and Northern Ireland, where the SDLT return is due within 14 days (see SDLT return deadline and penalties). Scotland has its own rules, covered in LBTT returns and deadlines. Firms acting on both sides of the border should not assume one timetable fits all.

When must the tax be paid?

The WRA guidance says payment is due on the same timeline as the return. Two further dates follow from the Tax Collection and Management (Wales) Act 2016 (TCMA):

• late payment interest runs from the day after the filing date (section 157);
• a late payment penalty arises if the tax is still unpaid at the penalty date, which for an amount shown in the buyer’s return is 30 days after the filing date (section 122, Table A1).

Where part of the price is contingent or uncertain and may be paid more than six months after the effective date, section 58 LTTA allows a deferral request. The WRA must agree only if, among other conditions, the return and the request are made on or before the filing date. It cannot be added later. The English equivalent is explained in SDLT on overage and contingent payments.

What penalties apply to a late return?

Return still not made	Penalty	TCMA section
After the filing date	£100	118
After 6 months beginning with the day after the filing date	Greater of 5% of the tax and £300	119
After 12 months beginning with the day after the filing date	Greater of 5% of the tax and £300; where information is deliberately withheld, £300 or a greater amount up to 95% of the tax	120

The penalties are cumulative. A return that is a year late attracts all three. The £100 applies even if the return is one day late and even if no tax was due.

What penalties apply to late payment?

Section 122 charges 5% of the unpaid LTT if it is not paid by the penalty date. Section 122A then adds a further 5% of the amount still unpaid after 6 months, and a second further 5% after 12 months, both measured from the day falling 30 days before the penalty date, which in practice is the filing date. Interest accrues alongside the penalties at the WRA’s late payment interest rate until the tax is paid.

Can a penalty be challenged?

Section 126 TCMA removes late filing and late payment penalties where the buyer satisfies the WRA, or the tribunal on appeal, that there was a reasonable excuse. The section limits what counts:

• lack of funds is not a reasonable excuse unless caused by events outside the person’s control;
• relying on someone else, such as a conveyancer, is not a reasonable excuse unless the buyer took reasonable care to avoid the failure;
• once the excuse ends, the failure must be put right without unreasonable delay.

Section 125 also allows the WRA to reduce, suspend or remit a penalty because of special circumstances, which do not include ability to pay. A buyer who disagrees with a penalty decision can ask the WRA for a review within 30 days beginning with the day the decision notice is issued (section 174) or appeal to the tribunal within the same period (section 179). After a review, the 30 days for an appeal run from the review conclusion notice.

Can the return be amended or checked later?

Under section 41 TCMA the buyer can amend the return by notice to the WRA within 12 months beginning with the filing date. Under section 43 the WRA can open an enquiry within 12 months beginning with the filing date, or with the date the return was made if it was late, and an amendment restarts that period. Further returns on the same transaction, for example when contingent consideration is paid, can let the WRA enquire into the original return after the 12 months have passed.

What mistakes come up most often?

• Using the SDLT timetable or the wrong authority. Welsh property goes to the WRA on a 30 day clock, not to HMRC.
• Not filing because no tax is due. A relief or a price within the nil band does not remove the duty to file unless a section 46 exception applies.
• Counting from completion day. The 30 days begin the day after the effective date.
• Missing a deferral. A section 58 request made after the filing date must be refused.
• Relying on the conveyancer without checking. Section 126 does not treat reliance as an excuse unless the buyer took reasonable care.

Rates for commercial purchases are on our page on LTT non residential rates.

If HMRC opens a check into your return, tax investigation insurance pays your accountant’s fees. Solar Protect cover pays up to £100,000 with no excess; it never pays tax, interest or penalties. Read how our cover works or get a quote.

Related Accountapedia entries

• LTT (Wales) explained
• LTT on leases in Wales
• Reliefs from LTT in Wales
• LBTT returns and deadlines
• LTT higher residential rates in Wales

Sources

• legislation.gov.uk: Act of the Senedd 2017 c. 1, section 44
• legislation.gov.uk: Act of the Senedd 2017 c. 1, section 45
• legislation.gov.uk: Act of the Senedd 2017 c. 1, section 46
• Welsh Government: Land transaction tax guide
• GOV.UK: Stamp duty land tax
• legislation.gov.uk: Act 2003 c. 14, section 76
• legislation.gov.uk: Act of the Senedd 2016 c. 6, section 157
• legislation.gov.uk: Act of the Senedd 2016 c. 6, section 122
• legislation.gov.uk: Act of the Senedd 2016 c. 6, section 122A
• legislation.gov.uk: Act of the Senedd 2017 c. 1, section 58

Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 24 October 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.