Wales
Claiming back the LTT higher rates
Buying before selling puts a Welsh purchase on the higher table. Selling in time takes it back to the main one.
Checked by Radif Partners · Editorial policy · How we calculate
A buyer in Wales who completes on a new main home before selling the old one pays Land Transaction Tax at the higher rates, and can claim a refund once the former main residence is sold within 3 years of the purchase. The refund is the difference between the two tables, not a fixed percentage: £17,450 on a £350,000 home, which paid £24,950 instead of £7,500, and £10,700 on £200,000, where the main rates charge nothing. The claim is made by amending the LTT return within 12 months of its filing date or, after that, by a refund claim within 4 years starting the day after the filing date. The Welsh Revenue Authority asks for evidence of the sale, such as the TR1 or TP1 transfer deed or the contract, and says it processes claims in 15 to 20 working days. A buyer whose old home sells before the purchase never pays the higher rates.
Your LTT higher rates refund
Refund you can claim
£17,050
| Paid at the higher rates | £23,950 |
| Due at the main rates | £6,900 |
| Old home sold in time | Yes, within 3 years |
Amend the return within 12 months of the filing date, or claim within 4 years from the day after it. Processing: 15 to 20 working days.
Why a mover ends up on the higher table
The Welsh test is taken at the end of the day of completion. A buyer who completes on a new home in the morning, while the old one is still on the market, owns two dwellings that evening. The return therefore has to be made at the higher rates, and the tax paid on that basis within 30 days. The rules recognise that this buyer is moving, not investing, and provide two ways out.
- Sale first. If the previous main residence was sold within the 3 years before the new purchase, the purchase is a replacement and the main rates apply from the start. Nothing to claim later.
- Purchase first. If the previous main residence is still owned at completion, the higher rates are paid, and a refund is claimed when the old home is sold within 3 years after the purchase.
The refund is the gap between two tables
England refunds a surcharge, and Scotland refunds a supplement of a fixed percentage. Wales refunds the difference between two different band tables, so the amount does not grow in a straight line with the price.
| Price of the new home | Paid at higher rates | Due at main rates | Refund |
|---|---|---|---|
| £190,000 | £9,850 | £0 | £9,850 |
| £225,000 | £12,825 | £0 | £12,825 |
| £280,000 | £17,950 | £3,300 | £14,650 |
| £350,000 | £24,950 | £7,500 | £17,450 |
| £480,000 | £39,950 | £16,500 | £23,450 |
| £750,000 | £73,700 | £36,750 | £36,950 |
Below £225,000, the main rates charge nothing, so the whole higher-rates bill comes back: £9,850 on £190,000. Above it, part of the bill was due anyway, and the refund settles at a level set by the gap between the two tables at that price.
The conditions
Three facts are checked. The home sold must have been the buyer’s only or main residence at some point in the 3 years before the new purchase. The new home must be bought to replace it, which means the buyer now lives there as their main residence. And the disposal of the old home must happen within 3 years of the effective date of the new purchase, which is normally the date of completion.
The refund only follows the sale of a former main residence. Selling a flat that was let throughout, while keeping the old family home, gives nothing back. A parent who went on the title of a child’s first home while keeping their own house has not replaced anything either, so the higher rates on that joint purchase stay due whatever is sold later.
When the sale is slow
A 3-year window sounds generous, but a home that will not sell is exactly what puts a buyer in this position, and the same market can keep it unsold for a long time. Two choices are worth weighing early. Reducing the asking price on the old home costs money once; missing the window costs the whole refund, £20,450 on a £420,000 purchase. And letting the old home while waiting for the market does not, by itself, end its status as a former main residence: what matters is that it was your main home in the 3 years before the new purchase and that it is sold within 3 years after. Keep the tenancy agreement and the dates you moved out with the rest of the evidence, because they show when the home stopped being lived in and why.
Two time limits, one after the other
The Welsh Revenue Authority offers two routes, depending on how long ago the return was filed.
- Amend the return within 12 months of the filing date. The amended return shows the main-rate figure, and the difference is repaid.
- Claim a refund after that, within 4 years starting the day after the filing date. This is the route for a sale that takes more than a year.
On a calendar: a buyer who completes in Llandaff on 20 March 2026 and files on 10 April 2026 must sell the old home by 20 March 2029. A sale before 10 April 2027 can go through an amended return. A later sale is claimed on the refund form, with plenty of time, since the claim period runs until 11 April 2030. The binding constraint is the 3-year sale deadline, not the claim period.
The evidence to send
The authority asks for proof that the former main residence has been disposed of. The usual documents are the transfer deed registered at HM Land Registry, a TR1 for the whole of a registered title or a TP1 for part of one, or the contract for the sale where the deed is not available. It also asks for the details of the new purchase, so that the claim can be matched to the original return. Keep proof that the old home was your main residence, such as council tax and utility bills in your name at that address, in case the authority asks.
The authority states that it processes refund claims in 15 to 20 working days once it has what it needs. A claim made with the transfer deed attached is the fastest. The Welsh Revenue Authority refund page has the online form and the latest guidance.
Wales, Scotland and England side by side
The three nations agree on the idea and differ on everything else. Scotland gives 36 months to sell and repays the Additional Dwelling Supplement in full. England gives 3 years and refunds the 5% surcharge on each band, with a claim due within 12 months of the sale or of the filing date, whichever is later; the surcharge refund calculator works it out. On a £350,000 home the three refunds are £17,450 in Wales, £28,000 in Scotland and £17,500 in England.