Wales Government introduced legislation to replace the UK stamp duty land tax (SDLT), together with the land transaction tax (LTT), from April 2018.
LTT will be payable on the purchase or lease of the building or land in Wales at a certain price. It will broadly mirror the UK SDLT, to ensure consistency and stability for businesses and home buyers. Nevertheless, some changes will be made taking into account the Welsh circumstances and priorities.
LTT mode will include a comprehensive general rule against tax evasion (Gaar) and targeted generally against tax evasion (Taar), which will be applied to all reliefs. This would eliminate the existing two British relief relating to the demutualization of insurance companies and building societies, as well as change other reliefs in order to make them more relevant to Welsh circumstances. A small part of new residential leases will be exempted from tax in accordance with the LTT, as well as rules relating to the lease, will be simplified.
The government will announce LTT strip prices closer to the date of implementation in April 2018.
The Minister of Finance Mark Drakeford said: “This is a tax that affects many of us, replacing the stamp duty land tax from the new Made in Wales a tax on land transactions Public services in Wales will continue to benefit from the income received by these important tax We consulted widely on how this tax should work in Wales and heard a range of views. Therefore, it will broadly reflect the stamp duty land tax, providing consistency and stability of the business telling us what they need and to ensure the smoothness of the deal for home buyers and real estate market . In addition, we were able to learn about the devolution of tax in Scotland.”
“But we were also able to seize the opportunity, on which the tax devolution suggests certain modifications in order to improve the effectiveness, efficiency, and focus on the conditions and priorities of Wales Bill is in line with our clear principles for the payment of taxes in Wales, it is create fairer and simpler system, which supports jobs and growth.”