A summary of how the new Welsh Revenue Authority will function.
The Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Bill – together with the explanatory memorandum – has been laid before the National Assembly for Wales. The Act provided the legal framework to collect and manage devolved taxes, including the establishment of the Welsh Revenue Authority which will undertake the collection and management functions for land transaction tax.
When enacted the Bill will establish a framework for setting the rates and bands for land transaction tax and these will be set through secondary legislation closer to April 2018.
This Bill aims to replace stamp duty land tax from April 2018 and sets out:
Part 2 – the key principles of LTT, including which types of transaction will incur a charge to LTT and who will have to pay
Part 3 – how the tax will be calculated and what reliefs will apply
Part 4 – the application of the Bill in relation to leases and licences
Part 5 – special rules applicable to a variety of persons and bodies (such as partnerships or companies)
Part 6 – rules on making a land transaction return and paying the tax
Part 7 – specific measures to tackle devolved tax avoidance.