The Welsh Revenue Authority has launched a consultation on legislative proposals relating to the Welsh Tax Acts. Views are being sought on proposals aimed at clarifying the application of tax in specific areas.
The Welsh Revenue Authority (WRA) has stated it has found difficulty operating the legislation effectively and seeks to make changes to remedy this. Operational experience has shown over time that certain aspects of the legislation require refinement.
The consultation contains a number of changes aimed at:
- 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 consultation aims to future-proof certain aspects of Welsh tax legislation, including whether the WRA has the relevant tools it needs to adapt to changes in the behaviour of taxpayers and agents.
The objectives of the WRA are to:
- Make it easy to do the right thing.
- Be fair and consistent in the delivery of their services.
- Be sustainable and future-focused.
The consultation covers several different areas, broken down into the following sections:
- Question 1: Relates to the WRA's internal governance.
- Question 2-10: Addresses the powers of the WRA. Aimed at determining whether the current powers work as intended and building on current powers to support tax administration in Wales. This includes:
- The sharing of protected information between the Welsh Revenue Authority and other bodies, such as councils.
- Withholding repayments during an enquiry.
- Providing clarity on overpayment relief claims.
- Power to carry out inspections without tribunal approval.
- Power to amend fixed penalties.
- Increasing late payment interest.
- Questions 11-16: Relate to the current operation of Land Transaction Tax and Landfill Disposals Tax. This includes:
- Amendments to clarify that any use of material within a landfill cell is taxable unless explicitly excluded.
- Clarification on group relief withdrawal when consideration is provided from outside of the group.
- Amendments to make clear that Higher Residential Rates will not apply to a transaction to which leasehold enfranchisement relief applies.
- Questions 17-18: Cover the potential impact of the proposed changes on the Welsh language and any changes to proposals that may be needed to mitigate effects on the Welsh language.
- Question 19 - Allows for any feedback.
Consultation responses can be submitted here. The consultation closes on 26 January 2026.
Welsh Land Transaction Tax (LTT)
What is Land Transaction Tax? How does it operate? What reliefs are available?
Welsh LTT Rates
What are Welsh Land Transaction Tax (LTT) Rates? How do you calculate Welsh Land Transaction Tax?
Welsh Taxes: What's new 2025?
What’s new for Welsh taxes in 2024-25? What updates have occurred this year? What changes must be implemented for 2025-26?
External link
Consultation on legislative proposals relating to the Welsh Tax Acts