Chartered Institute of Taxation welcomes Welsh Stamp Duty Land Tax proposals
1st June 2015
01.06.2015 - The Chartered Institute of Taxation (CIOT) has welcomed proposals for the devolution of the first Welsh taxes in 800 years.
- The proposals include:
- A Land Transaction Tax (LTT) which will allow Wales to develop its own structure for property transactions;
- A Landfill Disposals Tax (LDT) to support the Government’s zero-waste agenda
Lakshmi Narain, CIOT representative on the Welsh Government’s Tax Experts Group, said:- “The CIOT is proud to have played a leading role in consulting with and advising the Welsh Government on the devolution of two important areas of taxation. “The devolution of LTT will enable Wales to develop its own structure for residential and commercial property transactions taking account of conditions particular to Wales. “That being said, consistency between the different UK tax regimes for commercial transactions is important for business as many property owners, occupiers and investors hold portfolios of property across England and Wales. It is therefore crucial that differences introduced in LTT are carefully evaluated and are of clear benefit to the Welsh economy to warrant the extra administrative burdens that diverging regimes will inevitably impose on businesses.
“Welsh tax autonomy anchored by a degree of consistency with the tax regimes of the other UK nations might seem contradictory but it need not be so long as the right balance is struck. It is up to the Welsh Government to strike this balance.
“We have also been pleased to comment on the devolution of LDT2. This is a more complex area than it may at first seem and so we advise the Welsh Government to tread with caution. A departure from other UK tax models may be required in order to fulfil objectives specific to Welsh government policy. Indeed, this is an opportunity for Wales to lead the way in producing a more modern, efficient and behaviour-changing LDT system.
“Changes should translate into legislation that not only supports Wales’s zero-waste agenda but also recognises the needs of operators who will not want major system changes.”
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