In 2017, the Welsh Government introduced its own taxation policy for transactions involving the sales and leasing of land and buildings. Wales’s new Land Transaction Tax and Anti-avoidance of Devolved Taxes Act 2017 (LTTA) replaced the UK’s Stamp Duty Land Tax (SDLT) and devolved the power to collect and administer Land Transaction Tax to the Welsh Revenue Authority. Designed to clarify and streamline legislation, the policy is aimed at improving taxpayers’ compliance.
Alma Economics was commissioned by the Welsh Government to conduct an independent review of the LTTA, assessing the policy’s success at achieving the desired improvements over the SDLT. Our team’s methodology in conducting this technical exercise comprised i) an online survey of experienced tax practitioners, ii) in-depth interviews with tax professionals and technical committees of professional bodies, and iii) a review of the available evidence on land transactions.
Our findings, presented to the Minister for Finance and Local Government on 1 February 2023, suggest that:
Across all review aspects, policy intents have been achieved and remained appropriate.
The LTTA’s implementation was positively received and contributed to compliance.
Policy objectives should be periodically reviewed and may require adjustment in light of any changes to market values.
➥ Read the full report on the Welsh Government website here.
