Claim a refund of Land Transaction Tax higher rates if you lease a property to a local authority

Claim a refund of Land Transaction Tax (LTT) paid at the higher rate if you lease your property to a Welsh local authority (such as Leasing Scheme Wales). 

Who can claim a refund

You can claim a refund if the property: 

• was purchased between 13 February 2026 and 31 March 2031 
• has a value of £400,000 or less 
• lease was transferred to a Welsh local authority: 
  • within 18 months of the original purchase 
  • before 31 March 2031 
• was reported and paid at the higher rate of LTT 
• has a lease of between 5 and 20 years 
• receives rent that is less than the maximum Local Housing Allowance (LHA) 

The claim must: 

• be made within 12 months of the date the property was leased to a Welsh local authority  
• be submitted as a refund claim, not an amendment to a return

The main rate of LTT will still apply.

It usually takes 15 to 20 working days to process your claim. This may take longer if we need more information. 

If you end the lease with the local authority early

If you claimed a refund and end the lease with the Welsh local authority within 5 years of the lease start date, you must: 

• submit a further return to the Welsh Revenue Authority (WRA) and pay any LTT due 

The amount of LTT due will be the same as the refund amount initially claimed.

Before you start

Make sure you have the following information before you start. 

Details of the original transaction 

You'll need to provide: 

• your personal or company details, including: 
  • full name 
  • address 
  • phone number 
  • email address  
• your 12 digit Unique Transaction Reference Number (UTRN) from your return 
• details about the property, including:  
  • address  
  • date you bought the property  
• evidence that you’ve leased your property to a Welsh local authority (electronic copies of signed and dated contracts)  
• the refund amount you’re claiming, which: 
  • is the higher rate LTT you've paid minus the main rate for your property 
  • can be worked out using our tax calculator 
• bank details for receiving the refund:  
  • name of account holder  
  • account number  
  • sort code

If you claimed Multiple Dwellings Relief (MDR) on the property, you’ll need to provide extra documentation, as shown in our technical guidance.

How we use your information

See our privacy policy for how we use the information you provide.

Support

If you need help or would like this form in a different format, contact us.