Welsh Government to take reigns on the principality’s SDLT
Taxes on property transactions in Wales will be handed over to Cardiff Bay with the Senedd passing the legislation enabling them to do so.
The two new taxes cover Stamp Duty Land Tax and Landfill Tax and will be renamed the Land Transaction Tax and the Landfill Disposals Tax.
The Senedd says they are the first Welsh taxes in 800 years, and will be implemented by April 2018.
Mark Hayward, managing director of the National Association of Estate Agents said: “The NAEA welcomes the new powers for the Welsh Government to collect Land Transaction Tax (LTT) receipts, as it will have a largely positive impact on the residential housing sector in the region. The introduction of the new initiative will create a fairer system and in turn increase the desirability of Welsh property.
“While, in the longer term, it may lead to an increase in house prices as demand rises, it will increase revenue for the Welsh Government which can be used to regenerate communities across the region. It will also ensure that the Welsh residential market remains healthy, which will be a boost to NAEA’s members across the border.”
“NAEA looks forward to working with the newly established Welsh Revenue Authority (WRA) and its chair, when he or she is elected, in the years ahead to build a fairer and successful property sector for generations to come”.
The new legislation establishes the Welsh Revenue Authority (WRA) and will confer powers and duties to enable it to collect and manage devolved taxes. It also provides for a Taxpayers’ Charter that will set out the relationship between the WRA and taxpayers.
Before the recent Assembly Government elections, the then Finance and Government Business Minister Jane Hutt said: “Once law, the Tax Collection and Management Bill enables us to make the essential arrangements for our new devolved tax responsibilities and paves the way for us to put in place taxes that are more suited to Welsh circumstances and preferences – the first Welsh taxes in 800 years. This new tax legislation will make a real difference to people’s lives.
“We have worked closely with those who will be affected by these new powers and responsibilities whilst developing this Bill. Civil Society, Businesses and taxpayers in Wales deserve a system of taxation that is fundamentally simple, fair, transparent and, where appropriate consistent with existing UK tax arrangements.
“This new Bill will help us achieve this – minimising the burden on taxpayers, ensuring a smooth transition to the new arrangements and assisting tax compliance. At its core it represents our collective commitment to a self-confident, fairer and more prosperous Wales – it is an exciting and important next step on our road to tax devolution.”