The Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Bill is to be introduced in the latest legislative programme of the Welsh Government (WG), and its first Welsh tax in almost 800 years.
The Welsh Government writes:
A new Bill will introduce the first Welsh tax in almost 800 years – land transaction tax, which will be a replacement for stamp duty land tax. The Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Bill is the first Bill to be introduced as part of the Welsh Government’s new Legislative Programme. Like stamp duty land tax, land transaction tax will be payable on the purchase or lease of a building or land in Wales over a certain price. It will affect house buyers and businesses, including builders, property developers and agents involved in the transaction process (such as solicitors and conveyancers)…
Key changes include:
- A new overarching general anti-avoidance rule (GAAR) to help prevent and robustly tackle tax avoidance;
- A broad targeted anti-avoidance rule (TAAR) which applies to all reliefs;
- The exclusion of two reliefs in relation to the demutualisation of insurance companies and building societies;
- Amendments to some other reliefs so they operate better or in a more relevant way to Wales;
- The rent element of new residential leases will be exempt from tax under LTT;
- The simplification of rules in relation to leases.