Land Transaction Tax (LTT) reliefs in Wales follow the same broad pattern as the Stamp Duty Land Tax (SDLT) reliefs they replaced, with group relief, charities relief and around a dozen others set out in Schedules 9 to 22 of the Welsh Act. Every relief must be claimed in the return, and all of them sit under one Welsh anti avoidance rule rather than the separate tests SDLT attaches to each relief. The biggest practical differences are that Wales has kept multiple dwellings relief, which SDLT abolished from 1 June 2024, and that Wales has no first time buyers relief.

Which reliefs does LTT offer?

LTT is charged under the Land Transaction Tax and Anti avoidance of Devolved Taxes (Wales) Act 2017 (LTTA) and collected by the Welsh Revenue Authority (WRA). Section 30 lists the reliefs, each in its own Schedule: sale and leaseback (Schedule 9), alternative finance (Schedules 10 and 11), incorporation of a limited liability partnership (12), multiple dwellings (13), certain acquisitions of dwellings (14), social housing (15), group relief (16), reconstruction and acquisition (17), charities (18), open ended investment companies (19), public and health bodies (20), compulsory purchase and planning obligations (21) and miscellaneous reliefs (22).

The WRA also publishes technical guidance on a special tax site relief. Section 30(4) says a relief must be claimed in the first return for the transaction or in an amendment to that return. The WRA guidance (LTTA/7061) confirms that relief not claimed in a return is not available. A relieved purchase still needs a return within the normal 30 days. Our LTT overview covers rates and filing.

How does LTT group relief work?

Group relief lets companies move property between members of the same group without an LTT charge. Under Schedule 16, paragraph 3, two companies are in the same group if one is the 75% subsidiary of the other, or both are 75% subsidiaries of a third company. Company B owns a 75% subsidiary only if it:

  • is beneficial owner of at least 75% of the ordinary share capital, directly or through other companies;
  • is beneficially entitled to at least 75% of the profits available for distribution to equity holders; and
  • would be beneficially entitled to at least 75% of the assets available to equity holders on a winding up.

Paragraph 4 then blocks relief where, at the effective date, arrangements exist under which:

  • someone has or could obtain control of the buyer but not the seller;
  • any of the consideration is to be provided or received, directly or indirectly, by someone outside the group; or
  • the buyer is to stop being a 75% subsidiary, so that seller and buyer leave the same group.

There are carve outs for arrangements made with a view to a share acquisition qualifying for stamp duty acquisition relief under section 75 of the Finance Act 1986 (paragraph 4(2)), for some joint venture arrangements (paragraph 5) and for ordinary mortgages over shares (paragraph 6). The tests resemble the corporation tax group rules but must be checked separately.

When is group relief taken back?

Under paragraph 8 of Schedule 16 the relief is withdrawn if the buyer leaves the seller’s group within 3 years beginning with the effective date, while the buyer or an associated company still holds the interest. The WRA guidance (LTTA/7066) says the tax charged is the tax that would have been payable on the original transaction, calculated on the market value of the interest at the original effective date, or an appropriate proportion where only part is still held. The withdrawal must be reported on a further return.

Relief is not withdrawn where the buyer leaves the group only because the seller (or a company above it) is wound up, or because the seller leaves the group through a sale of its shares, although a later change in control of the buyer within the 3 years can still trigger a charge. If the buyer does not pay within 6 months, the WRA can recover the tax from another group company above it or from a controlling director (LTTA/7069). The recovery notice must be served within 3 years of the tax being finally determined and gives 30 days to pay (LTTA/7070).

How does LTT charities relief work?

Schedule 18, paragraph 3, relieves a purchase where the buyer is a qualifying charity. Paragraph 2 says a charity qualifies if it intends to hold the whole of what it buys for qualifying charitable purposes, meaning either for use in furthering its own or another charity’s charitable purposes, or as an investment whose profits go to its charitable purposes.

  • Greater part only. Paragraph 5 extends relief to a charity that intends to hold only the greater part for qualifying purposes, but a transfer of a major interest or the grant of a premium lease at a low rent (under £1,000 a year) other than in furtherance of its purposes then counts as a disqualifying event.
  • Joint purchases. Where a charity buys as tenant in common with a non charity, partial relief is given. The WRA guidance (LTTA/7085) bases it on the lower of the charity’s share of the property and its share of the consideration.
  • Withdrawal. Under paragraph 4, relief or a proportion of it is withdrawn if, within 3 years of the effective date (or under arrangements made in that period), the charity stops being established for charitable purposes only or uses the property for other purposes, while it still holds the interest.
  • Return codes. The WRA says relief code 002 is used for full relief and code 052 for partial relief.

Paragraph 9 gives matching relief to charitable trusts, meaning trusts whose beneficiaries or unit holders are all charities.

Where do the LTT reliefs differ from SDLT?

Point SDLT (England and Northern Ireland) LTT (Wales)
Anti avoidance test for group relief Not available if the transaction is not for bona fide commercial reasons, or if avoidance of tax is a main purpose of the arrangements (Finance Act 2003, Schedule 7, paragraph 2(4A)) No separate test in Schedule 16; the general reliefs rule in section 31 applies
Anti avoidance test for charities relief Transaction must not be entered into for the purpose of avoiding tax (Schedule 8, paragraph 1(3)) Section 31 applies
Multiple dwellings relief Abolished for transactions with an effective date on or after 1 June 2024 Still available under Schedule 13
First time buyers Relief with no tax up to £300,000, lost entirely above £500,000 No first time buyers relief
Clawback period for group and charities relief 3 years 3 years

The section 31 rule denies any LTT relief where the transaction is, or is part of, a tax avoidance arrangement. That needs two things together: obtaining a tax advantage must be the main purpose or one of the main purposes of the buyer, and the arrangement must lack genuine economic or commercial substance other than the tax advantage. The SDLT group relief test is wider in one respect, because failing either limb is enough. Wales also has a general anti avoidance rule for its devolved taxes in Part 3A of the Tax Collection and Management (Wales) Act 2016, which can counteract artificial arrangements. For the English rules see our page on SDLT group relief.

How does multiple dwellings relief work in Wales?

Schedule 13 lets a buyer of two or more dwellings in one transaction, or linked transactions, work out the tax on the average price per dwelling and multiply it back up. The WRA guidance (LTTA/7035 and LTTA/7038) says it is a partial relief, so some tax is always payable, the dwellings must all be in Wales, and the claim is made with relief code 50. Most such purchases are charged at the higher residential rates.

The floor was raised by regulations from 13 February 2026: paragraph 6(2) of Schedule 13 now says the tax on the dwellings cannot be less than 3% of the consideration attributable to them, replacing the previous 1%. Compare SDLT on several dwellings, where the relief has gone.

Worked example: claiming and losing group relief

Illustration only. Holdco Ltd owns all the shares in A Ltd and B Ltd. A Ltd transfers a Cardiff office building worth £1,000,000 to B Ltd. Using the WRA non residential purchase rates, the LTT without relief would be:

  • 0% on the first £225,000: £0
  • 1% on the next £25,000: £250
  • 5% on the remaining £750,000: £37,500
  • Total: £37,750

B Ltd files a return within 30 days and claims group relief, so nothing is payable. Two years later Holdco sells B Ltd to an outside buyer while B Ltd still owns the building. B Ltd has left the group within 3 years, so the relief is withdrawn and £37,750 becomes payable on a further return. Had a sale of B Ltd already been planned when the building moved across, paragraph 4 would have denied relief from the start.

What are the common mistakes?

  • Not claiming the relief in the return, or not filing because no tax is due.
  • Applying SDLT habits: a 14 day deadline, the separate SDLT anti avoidance wording, or the assumption that multiple dwellings relief no longer exists.
  • Overlooking arrangements already in place for a sale of the buyer company, or for outside finance to provide the consideration.
  • Forgetting that a charity which lets a relieved property for non charitable use within 3 years faces withdrawal.

For a side by side view of rates and deadlines across the UK see SDLT, LBTT and LTT compared, and for the wider Welsh tax system see devolved taxes in Scotland and Wales.

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Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 19 October 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.