The Welsh Revenue Authority (WRA) has published the outcome of its consultation 'Legislative Proposals Relating to the Welsh Tax Acts'. While there was general support for the proposals made, it will be for the next Welsh government to decide whether to take them forward.
The consultation, which received nine responses, posed 16 questions on suggested changes to the Welsh Tax Acts, to be included in Wales’s first ‘tax maintenance bill’.
Reception to the proposals was positive overall, including the suggestion that the changes should be made through primary legislation. Most respondents were supportive of the majority of proposals, albeit with some sector-specific concerns.
The consultation noted that it will be for the next Welsh government to decide whether to give effect to the proposals, but stated that the current government’s view is that the proposed changes would ensure that the Welsh Revenue Authority (WRA) can continue to manage Welsh taxes as effectively as possible.
As such, a series of amendments to the Welsh Tax Acts is being developed that could be delivered through the introduction of a tax maintenance bill once the new Welsh government is elected.
The changes proposed in the original consultation sought to:
- Remedy areas where the WRA found difficulty in operating the legislation effectively.
- Respond to feedback from taxpayers and advisors.
- Bring Wales in line with changes that have happened elsewhere within the UK.
To achieve this, amendments were suggested to the:
- Tax Collection and Management (Wales) Act 2016 (TCMA).
- Landfill Disposals Tax (Wales) Act 2017 (LDTA).
- Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (LTTA).
The proposals included:
- Giving the WRA the power to withhold repayments while undertaking an enquiry.
- Allowing the WRA to share protected taxpayer information with principal councils and the Welsh Government for the purposes of their functions (including the Visitor Levy).
- Providing a power for the WRA to be able to issue an information notice to gather information to check whether the conditions for the withdrawal of a relief have been met.
- Increasing the interest amount on late payment interest to the Bank of England base rate plus 4%.
Useful guides on this topic
Welsh Land Transaction Tax (LTT)
What is Land Transaction Tax? How does it operate? What reliefs are available?
External link
Welsh government: Legislative proposals relating to the Welsh Tax Acts