Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Bill
The Welsh Government has recently published a draft version of the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Bill before it is introduced into the National Assembly in Autumn 2016. The draft Bill sees a new Land Transaction Tax (‘LTT’) which will replace Stamp Duty Land Tax (‘SDLT’) in Wales from April 2018. It may affect house buyers and sellers and businesses including builders, property developers and agents involved in the transaction process (such as solicitors and conveyancers).
Just like SDLT, the LTT will be payable on purchases or leases of land over a certain price. It will be broadly consistent with SDLT by mirroring key elements such as partnerships, trusts and reliefs, to provide stability and reassurance to businesses and the property market. The rates of the new tax will be decided closer to April 2018 to reflect the economic and market conditions at the time.
The introduction of the LTT, will mark the first time that Wales will have control of its own taxes for more than 800 years. The Welsh Revenue Authority will be in charge of collecting and managing the devolved taxes initially expected to comprise the LTT and Landfill Disposals Tax.
This is not the final version of the bill and there may be changes before its introduction, including full equivalence between the English and Welsh text. It is anticipated that the bill will receive Royal Assent in summer 2017.
For more information, please contact our Property team.
Aimee Thomas, Trainee Solicitor