For the first time in around 800 years, Wales will shortly be implementing the devolution of taxation to the Principality.
From 1 April 2018, Land Transaction Tax (LTT) will replace Stamp Duty Land Tax (SDLT) in Wales. Although the new LTT operates on a similar basis to SDLT, some of the rates and bands will differ from the English counterpart. At the same time, a new Welsh Landfill Disposal Tax (LDT) will be introduced for landfill operators.
The taxes will be administered by the Welsh Revenue Authority (WRA) and will come into effect for transactions after 31 March 2018. LTT returns will normally be dealt with by a solicitor or conveyancer, and they should already have registered with the WRA to do so.
From 6 April 2019, Wales will also have its own Income Tax. The tax will still be collected by HMRC and Welsh taxpayers do not need to do anything other than to ensure that that HMRC has their correct address.
The Revenue from the new taxes will help to fund the Welsh Government. Welsh Finance Secretary, Professor Mark Drakeford, hopes that the devolution of taxation will “make Wales a fairer nation and grow the Welsh Economy”.
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.