“That rise will improve fairness,” said Mark Drakeford as the Senedd approved the change on Tuesday, 10 February. From today, Friday 13 February 2026, Wales triples the minimum Land Transaction Tax due when buyers claim multiple dwellings relief - lifting the floor from 1% to 3%, a shift North West deal‑makers will feel on cross‑border purchases. (record.senedd.wales)

Multiple dwellings relief (MDR) can be claimed when several homes are bought from the same seller in one go, including as part of a mixed‑use purchase such as a shop with flats above. The minimum‑tax rule exists to stop MDR pushing liability so low that some residential elements become effectively tax‑free - a risk heightened in mixed‑use deals because Wales’s main residential nil‑rate band starts at £225,000. (gov.wales)

The new 3% minimum applies to transactions with an effective date on or after 13 February 2026. Pre‑commencement contracts are protected if they were entered into - or substantially performed - before that date, but protection falls away if the contract is varied, assigned or options are exercised on or after today. Linked‑deal rules also apply. Check the fine print before amending anything. (laiddocuments.senedd.wales)

For a practical feel: a Chester investor buying a mixed‑use block in Wrexham where the dwellings’ share of the price is £300,000 would have faced a £3,000 floor yesterday. From today the floor is £9,000. The minimum bites on the consideration attributable to the dwellings, not on the whole mixed‑use price. (Illustrative figures; seek professional advice.)

Ministers say the change mainly tidies up an anomaly in mixed‑use cases and keeps treatment distinct from pure residential portfolios. “They provide an increase in the rate that applies to the multiple dwellings relief minimum tax rule,” Drakeford told Members, urging them to back the measure. The motion passed by 36 votes to 10, with one abstention. (record.senedd.wales)

The politics were lively. Welsh Conservatives opposed the move, arguing it “would penalise investments in housing” and raise costs for developers and landlords at a difficult time, but the Government majority held. For northern buyers active across North Wales, the message is simple: bake a 3% floor into appraisals from today. (record.senedd.wales)

Context matters. England and Northern Ireland abolished Stamp Duty MDR on 1 June 2024; Wales chose to keep MDR but tighten rules. Ministers consulted in 2024, then tweaked MDR in February 2025, and now have raised the minimum rate while signalling a watchful eye on value for money. (gov.wales)

One proposal - an ‘equalisation rule’ designed to put per‑dwelling liabilities in MDR cases on a par with single‑dwelling purchases - has been shelved for technical complexity. Work continues, but ministers say any further MDR decisions sit with the next administration. (gov.wales)

Welsh Government’s impact paperwork says the 3% floor should “increase fairness” and may only marginally lift LTT receipts. The Welsh Revenue Authority will update guidance so agents, conveyancers and landlords can follow the change with confidence. (gov.wales)

What this means on the ground from the Northern side of the border: if you’re running numbers on a shop‑plus‑flats in Mold, a coastal block in Colwyn Bay or a small PRS scheme in Wrexham, assume the residential slice won’t fall below 3% when MDR is in play. Keep an eye on transitional protections if you exchanged early, and think carefully before varying contracts now the rule is live. (laiddocuments.senedd.wales)