sdlt.co.uk

UK and Welsh governments confirm that the first Welsh taxes for almost 800 years are ready to be switched on

26th January 2018

From 1 April 2018 Stamp Duty Land Tax (SDLT) and landfill tax will be replaced by Land Transaction Tax (LTT) and landfill disposals tax in Wales.

At a meeting in Cardiff on 26 January 2018 the Chief Secretary to the Treasury, Elizabeth Truss, and Welsh Government Finance Secretary, Professor Mark Drakeford, agreed that, following an assessment of the Joint Exchequer Committee (Officials) on 10 January, the Welsh Government, Welsh Revenue Authority (WRA) and HM Revenue & Customs (HMRC) are ready for the transition to the new devolved taxes.

Professor Drakeford said:

“The devolution of these taxes represents a significant milestone for Wales, helping us to make Wales a fairer nation and to grow the Welsh economy.

Today’s meeting was also an opportunity to reflect on the good and constructive relationships which have developed in taking fiscal devolution forward over this period. I look forward to this continuing.”

Chief Secretary to the Treasury, Elizabeth Truss, said:

“We are committed to giving the National Assembly for Wales more responsibility to raise its own funding. And that is why further income tax powers will follow next year. This will give the Welsh Government greater powers to shape their economy.

The UK Government is also committed to delivering for Wales, as demonstrated by the £1.2 billion boost to the Welsh Government’s funding at Budget. I look forward to continuing our constructive working partnership.”

The Welsh Government and the National Assembly for Wales will become responsible for some of the taxes paid in Wales from April 2018.

Two taxes in Wales will be affected:-

  • Stamp Duty Land Tax
  • Landfill tax

The UK Government legislated for SDLT and Landfill Tax devolution in the Wales Act 2014.

 

Land and Property Transactions in Wales on or after 1 April 2018

Land Transaction Tax:

From 1 April 2018 you’ll pay Land Transaction Tax (LTT) on any land transactions in Wales. Land Transaction Tax is operated by the Welsh Revenue Authority (WRA) so payment will be to WRA and not to HM Revenue and Customs (HMRC).

Stamp Duty Land Tax:

From 1 April 2018 you won’t have to pay Stamp Duty Land Tax (SDLT) or need to send HM Revenue and Customs (HMRC) a return for these transactions (subject to special cases).

 

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