Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017
The Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (the Act) applies a tax on land transactions that take place in Wales. This is called the “land transaction tax” and affects people who purchase a residential property to live in, as well as persons who acquire a non-residential property (as part of a business, for example).
Provision is made about the key concepts underlying the tax, including:
- which transactions count as land transactions;
- what is a chargeable interest and when it applies;
- which land transactions the tax is charged upon;
- tax bands and rates;
- how to calculate the tax;
- the reliefs available from the tax.
The Act explains how the tax applies to leases, and to companies, partnerships and trusts. It also explains when and by whom returns and payments are required to be made to the Welsh Revenue Authority. Provision is also made in order to counteract avoidance arrangements in relation to devolved taxes.
Further information on the Act can be found in the Explanatory Notes.
Coming into force
Part 8 of the Act (except for section 76 and Schedule 23) came into force on 25 May 2017, which is the day after the Act received Royal Assent, in accordance with section 81(1). The remaining provisions of this Act come into force on a day appointed by the Welsh Ministers in an order made by statutory instrument, in accordance with section 81(2). The following orders have been made:
- The Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (Commencement No. 1) Order 2017
- The Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (Commencement No. 2) Order 2018
Subordinate legislation made under the Act
In addition, the UK Government made this Order under the Government of Wales Act 2006:
Consideration of the legislation by the Senedd:
The Bill was introduced on 12 September 2016 by Mark Drakeford MS, who was the Cabinet Secretary for Finance and Local Government at the time. It was passed by Senedd Cymru (then known as the National Assembly for Wales) on 4 April 2017.
More information about the Bill is available on the Senedd’s website, including a record of the passage of the Bill through the Senedd and the Explanatory Memorandum that was prepared by the Welsh Government (as revised after Stage 2).
The Act received Royal Assent on 24 May 2017.