Article by Martin Jennings, National Assembly for Wales Research Service
Two thirds of homes in Wales are owner occupied. From 1 April 2018 Stamp Duty Land Tax, to be renamed Land Transaction Tax, rates will be set by the Welsh Government. So all residential and business premises sales from this date will be affected by decisions made in Wales. The Welsh Government is running a consultation to help shape the policy. Their aim is that a future tax is simple, fair and difficult to evade. This is an opportunity for the public to feed into the development of a new tax system that will impact on anyone buying a house or a business premises after 1 April 2018. Views are being sought on issues such as:
- What should the structure of the tax be?
- What should be considered when making policy on tax bands and rates?
- How can tax avoidance be minimised?
- Should there be reliefs and exemptions?
- How should transaction by companies rather than people be treated?
- Should leases be treated differently to purchases?
For further information, or to respond to the consultation, visit the Welsh Government website. The consultation closes on 6 May 2015. There were over 50,000 transactions subject to Stamp Duty Land Tax in 2013-14 in Wales. It is forecast that by 2018-19 the tax will collect over £200 million a year.
