Land Transaction Tax consultation

Wednesday 01 April 2015

The Welsh Government's Finance Committee is undertaking and inquiry into the collection of devolved taxes, including Land Transaction Tax, which will replace Stamp Duty Land Tax in April 2018. We'll be responding as an organisation, but you should too.

The consultation comes hot on the heels of the Wales Act 2014 which paved the way for Wales to have more control over their own financial affairs and is the second in three consultations on different aspects of the new tax powers. These are the first new taxes to be levied in Wales for over 800 years and LTT is an opportunity to be able to tailor stamp duty to welsh market.

According to HMRC, Residential property accounts for 91% of total SDLT transaction in Wales so as estate agents is important to take part so you can help inform the development of policy and legislation on land transactions in Wales.

The document poses 28 questions in total covering:

  • Residential property transactions
  • Non-residential property transactions
  • Partnerships, trusts and companies
  • Leases
  • Reliefs and exemptions
  • Compliance, avoidance, disputes and penalties.

You can view the full consultation document here http://gov.wales/docs/caecd/consultation/150210-land-transaction-tax-en.pdf

There are two ways to respond:

You can submit your responses electronically via the online form: https://secure.gov.wales/consultations/forms/land-transaction-tax/?lang=en

or email financialreformmailbox@wales.gsi.gov.uk

Responses must be received by 6 May 2015.

In the introduction to the consultation document, Jann Hutt, Minister for Finance and Government Business says: “I have already set out my principles on Welsh taxes. I am looking to develop taxes that are fair to the businesses and individuals who pay them; which are simple, with clear rules, aiming to minimise compliance and administration costs; that support growth and jobs, and in turn will help tackle poverty; and which provide stability and certainty for taxpayers.”