Wales is hankering to raise its own taxes for the first time in nearly 800 years.
Earlier this week, the second of three assembly bills paving the way for Wales to establish a land transaction tax was published. This tax would replace stamp duty land tax in Wales from April 2018. Scotland have already split from the main UK rates on Stamp Duty and set the precedent on their own Land and Transaction Tax.
Welsh ministers are due to set the rate for the tax, raising around £250 million a year, in the autumn of 2017, and legislation for landfill tax, which is being devolved at the same time, will be published by the end of the year.
In addition, the Welsh government intends the Land Transaction Tax and Anti-avoidance of Devolved Taxes Bill to send a signal that it will be unacceptable to avoid devolved taxes collected by a new Welsh Revenue Authority.
This is big news for Wales and officials have said that the 220 page document is the longest piece of legislation Welsh ministers have produced and it’s expected to receive Royal Assent in spring 2017.
With tax devolution and the Scottish having the right to set their own income tax rates, next year’s tax tables could start to look more complicated…