Rates read 22 October 2026 from Welsh Government
LTT on a Lease (Wales)
Wales taxes the net present value of rent on a new lease: nothing to £225,000, 1% to £2 million, and 2% above that — the highest starting threshold of the three.
Work it out
Rent only. A premium paid for the lease is taxed separately.
The bands
| Portion of the price | Rate |
|---|---|
| £0 – £225,000 | 0% |
| £225,001 – £2,000,000 | 1% |
| Above £2,000,000 | 2% |
A higher threshold than England or Scotland
England starts charging on the rent at £125,000 and Scotland at £150,000. Wales waits until £225,000 — so a lease with a modest NPV pays nothing in Wales but something in the other two.
The relevant-rent rule
Welsh guidance treats some rent paid at the grant of a lease — "relevant rent" — separately from the premium. The threshold for that rule changed to £13,500 for transactions from 4 February 2021.
Premiums are separate
A premium for the lease is charged on the non-residential LTT scale (0%, 1%, 5%, 6%), not on these rent bands. This calculator covers the rent only.
Source: Welsh Government — Land Transaction Tax rates and bands (non-residential and lease sections), read 22 October 2026. Wales only. Enter the net present value of the rent; a premium is taxed separately.