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Welsh government publishes rates for new devolved taxes

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Alongside the announcement of its draft Budget for 2018/19, the Welsh government has published rates and bands for the new land transaction tax (LTT) and landfill disposals tax (LDT), which will replace SDLT and landfill tax respectively in Wales from 1 April 2018.

The threshold for LTT will be £150,000, with rates for residential properties rising to 12% above £1.5m. For non-residential properties, the rate will rise to 6% above £1m. For additional residential properties, the higher rate will be 3% on top of the main rate in each band.

The standard and lower rate of LDT in Wales will be aligned with UK landfill tax rates for the first two years. The new unauthorised disposals rate will be set at 150% of the standard rate.

Announcing the new rates and bands, finance secretary Mark Drakeford said: ‘Wales will have the highest starting threshold for the property tax in the UK. And Wales will become the first country in the UK to introduce a new higher rate of landfill disposals tax to deter people from disposing of waste illegally.’

The finance secretary also announced a shortlist of four new devolved taxes to be considered for implementation in Wales: vacant land tax; disposable plastic tax; tourism tax; and a levy to support social care. One of these will be put to the UK government in 2018 to test the Welsh government’s powers for additional devolved taxes under the Wales Act 2014.


The following secondary legislation brings into force certain provisions for the devolved taxes:

  • The Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (Commencement No. 1) Order, SI 2017/953, commences certain provisions of the Act on 18 October 2017, including powers for the Welsh government to make regulations setting tax bands and rates for the devolved land transaction tax in Wales, and imposing a duty on the Welsh Revenue Authority to publish guidance about land transactions partly in Wales and partly in England.
  • The Tax Collection and Management (Wales) Act 2016 (Commencement No. 1) Order, SI 2017/954, brings certain provisions of the Act into force on 18 October 2017, including establishment of the Welsh Revenue Authority as a corporate body and giving Welsh ministers specific powers to make regulations.
  • The Landfill Disposals Tax (Wales) Act 2017 (Commencement No. 1) Order, SI 2017/955, brings into force on 18 October 2017 powers in the Act allowing Welsh ministers to make regulations in preparation for the collection and management of landfill disposals tax. It also brings into force on 8 November 2017 powers allowing Natural Resources Wales and local authorities to share information with the Welsh Revenue Authority; and provisions requiring the Welsh government to introduce a landfill disposals tax communities scheme.
Issue: 1371
Categories: News , Stamp taxes