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Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017

A Welsh Government Bill, introduced by Mark Drakeford AM, Cabinet Secretary for Finance and Local Government. The Business Committee remitted the Bill to the Finance Committee.

 

About the Bill

The Bill includes provision for introducing a “Land Transaction Tax” (LTT) to replace the UK Stamp Duty Land Tax in Wales from April 2018 and measures to tackle the avoidance of devolved taxes. The Bill sets out:

  • the key principles of LTT, such as the types of transactions that will incur a charge to LTT and the person liable to pay LTT;
  • the procedure for setting tax rates and bands;
  • how the tax will be calculated and what reliefs may apply;
  • specific measures to tackle devolved tax avoidance;
  • the application of the Bill in relation to leases;
  • the specific provisions applicable to a variety of persons and bodies in respect of LTT;
  • the provision for making a land transaction return and for the payment of the tax; and
  • duties on taxpayers to make payments and pay penalties and interest in certain circumstances.

 

Further detail about the Bill can be found in its accompanying Explanatory Memorandum.

 

Current Stage

 

The Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (external website) became law in Wales (external website) on 24 May 2017.

 

Record of Passage in the National Assembly for Wales

 

The following table sets out the dates for each stage of the Bill’s passage through the National Assembly for Wales.

 

Stage

Documents

Bill introduced: 12 September 2016

Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Bill, as introduced (831KB)

 

Explanatory Memorandum (PDF, 1.3MB)

 

Presiding Officer’s Statement: 12 September 2016 (PDF, 126KB)

 

Written Statement by the Cabinet Secretary for Finance and Local Government: Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Bill: 12 September 2016 (PDF, 218KB)

 

Business Committee’s Report on the timetable for consideration of the Bill: 13 September (PDF, 58KB)

 

Plenary Statement: The Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Bill: 13 September 2016

 

Statement of policy intent (PDF, 251KB)

 

Legislative glossary (Welsh language version only (PDF, 208KB)

 

Technical glossary (PDF, 187KB)

 

Written Statement by the Cabinet Secretary for Finance and Local Government: Setting rates and bands for land transaction tax: 15 September 2016 (PDF, 85KB)

 

Stage 1: Committee considerations of general principles

The Finance Committee issued a call for evidence, which closed on 21 October 2016.

 

Committee dates

The Finance Committee considered the Bill on the following dates:

 

Date and Agenda

Purpose of meeting

Transcript

Senedd.TV

15 September 2016

 

Consideration of Approach to Stage 1 Scrutiny (Private)

 

 

21 September 2016

Oral evidence session

21 September 2016 Transcript

View meeting of 21 September

29 September 2016

Oral evidence session

29 September 2016 Transcript

View meeting of 29 September

13 October 2016

Oral evidence Sessions

13 October 2016 Transcript

View meeting of 13 October

3 November 2016

Oral evidence session

3 November 2016 Transcript

View meeting of 3 November 2016

 

Additional information

Letter from the Presiding Officer to the Chair – 16 September 2016 (PDF, 378KB)

 

Letter from the Cabinet Secretary for Finance and Local Government – 28 September 2016 (PDF, 139KB)

 

Letter from the Chair of Finance Committee to Alistair Brown, Scottish Government - 04 October 2016 (PDF, 161KB)

 

Letter from the Chair of Finance Committee to the Cabinet Secretary for Finance and Local Government - 5 October 2016 (PDF, 135KB)

 

Letter from the Cabinet Secretary for Finance and Local Government - 11 October 2016  (PDF, 122KB)

 

Written Statement by the Cabinet Secretary for Finance and Local Government: Update on Land Transaction Tax: higher rate for purchases of additional residential properties - 14 October 2016 (PDF, 185KB)

 

Letter from the Cabinet Secretary for Finance and Local Government to the Constitutional and Legislative Affairs Committee (PDF, 103KB)

 

Letter from the Cabinet Secretary for Finance and Local Government to the Finance Committee -2 November 2016 (PDF, 474KB)

 

The Constitutional and Legislative Affairs Committee considered the Bill on the following dates:

Date and Agenda

Purpose of meeting

Transcript

Senedd.TV

3 October 2016

Cabinet Secretary for Finance and Local Government (Member in charge of the Bill)

3 October 2016 Transcript

View meeting of 3 October 2016

 

Following the meeting on 3 October 2016 the:

 

Committee reports

Finance Committee Stage 1 Report – December 2016 (PDF, 997KB)

Response by the Cabinet Secretary for Finance and Local Government to the Finance Committee's Stage 1 Report - 10 January 2017  (PDF, 228KB)

Response by the Cabinet Secretary for Finance and Local Government to the Finance Committee's Stage 1 Report - 23 January 2017 (PDF, 494KB)

Joint letter from the Welsh Government and HMRC on the transition of devolved Welsh taxes - 26 January 2017 (PDF, 156KB)

Letter from the Cabinet Secretary for Finance and Local Government to the Finance Committee - 20 March 2017 (PDF, 49KB)

Constitutional and Legislative Affairs Committee Stage 1 report (PDF, 1MB)

Response by the Cabinet Secretary for Finance and Local Government to the Constitutional and Legislative Affairs Committee's Stage 1 Report, 10 January 2017 (PDF, 229KB)

 

Stage 1: Debate in Plenary on general principles

A debate took place in Plenary on 10 January 2017. The motion to agree the general principles of the Bill was agreed.

Financial Resolution

 

A Financial Resolution was agreed in Plenary on 10 January 2017.

Stage 2: Committee consideration of amendments

The Finance Committee agreed on 19 January 2017, under Standing Order 26.21, that the order of consideration for Stage 2 proceedings will be: Sections 2-13; Schedule 2; Sections 14-17; Schedule 3; Section 18; Schedule 4; Sections 19-30; Schedules 8-21; Sections 31-32; Schedule 5; Sections 33-40; Schedule 6; Section 41; Schedule 7; Sections 42-75; Schedule 22; Sections 76-80; Section 1; Schedule 1; Long title.

 

Stage 2 consideration took place in Committee on Thursday 16 February 2017.

 

Notices of Amendments

Notice of Amendments – 11 January 2017 (PDF, 130KB)

Welsh Government: Purpose and Effect table - 11 January 2017 (PDF, 282KB)

Clarification of amendments 17 and 18 - 18 January 2017 (PDF, 165KB)

Notice of Amendments – 26 January 2017 (PDF, 208KB)

Welsh Government: Purpose and Effect table - 26 January 2017 (PDF, 514KB)

Notice of Amendments – 9 February 2017 (PDF, 148KB)

Marshalled List of Amendments (Version 2) – 13 February 2017 (PDF, 317KB)

Groupings of Amendments – 13 February 2017 (PDF, 73KB)

Letter from the Cabinet Secretary for Finance and Government Business - 15 February 2017 (PDF, 70KB)

Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Bill, as amended at Stage 2 (PDF, 917KB)
(Amendments to the Bill since the previous version are indicated by sidelining in the right margin.)

Printing Changes to the Bill as amended at Stage 2 (PDF, 201KB)

Explanatory Memorandum, as amended at Stage 2 (PDF, 1MB)

Letter from the Cabinet Secretary for Finance and Local Government to Nick Ramsay AM - 4 March 2017 (PDF, 756KB)

Stage 3: Plenary consideration of amendments

Following the completion of Stage 2 proceedings, Stage 3 commenced on 17 February 2017. 

 

The National Assembly for Wales agreed on 21 March 2017, under Standing Order 26.36, that the order of consideration for Stage 3 proceedings will be: Sections 2-13; Schedule 2; Sections 14-17; Schedule 3; Section 18; Schedule 4; Sections 19-24; Schedule 5; Sections 25-30; Schedules 9-22; Sections 31-32; Schedule 6; Sections 33-41; Schedule 7; Section 42; Schedule 8; Sections 43-76; Schedule 23; Sections 77-81; Section 1; Schedule 1; Long title.

 

Stage 3 consideration and disposal of amendments took place in Plenary on 28 March 2017. All sections and Schedules of the Bill were deemed agreed.

 

Notices of Amendments

Notice of Amendments – 16 March 2017 (PDF, 128KB)

Welsh Government: Purpose and Effect table - 16 March 2017 (PDF, 194KB)

Notice of Amendments – 20 March 2017 (PDF, 69KB)

Notice of Amendments – 21 March 2017 (PDF, 85KB)

Technical note from the Cabinet Secretary for Finance and Local Government – Stage 3 amendments – 23 March 2017 (PDF, 251KB)

Marshalled List of Amendments (Version 2) – 23 March 2017 (PDF, 137KB)

Groupings of Amendments – 23 March 2017 (PDF, 71KB)

 

Bill as amended

 

Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Bill, as amended at Stage 3 (PDF, 1MB) (Amendments to the Bill since the previous version are indicated by sidelining in the right margin). Please note that this version may be subject to non-substantive changes/printing corrections.

Printing Changes to the Bill as amended at Stage 3 (PDF, 198KB)

 

Stage 4: Passing of the Bill in Plenary

The Bill was agreed by the Assembly in accordance with Standing Order 12.36 on 4 April 2017.

 

Presiding Officer’s Statement - Section 111A(3) of the Government of Wales Act 2006 - Land Transaction and Anti-avoidance of Devolved Taxes (Wales) Bill – 4 April 2017 (PDF, 130KB)

 

Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Bill, as passed  (PDF, 1 MB)

Printing Changes to the Bill as passed (PDF, 247KB)

Post-stage 4

The Attorney General (PDF, 37KB) and Counsel General (PDF, 176KB) wrote to the Chief Executive and Clerk of the Assembly to advise that they would not be referring the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Bill to the Supreme Court under Sections 112 or 114 of the Government of Wales Act 2006.

 

Date of Royal Assent

Royal Assent (PDF, 49KB) was given on 24 May 2017.

 

Contact information

Clerk: Catherine Hunt

Phone: 0300 200 6565

 

Postal address:

National Assembly for Wales

Cardiff Bay

Cardiff     CF99 1NA

 

Email: SeneddFinance@Assembly.Wales

Business type: Bill

First published: 23/08/2016

Documents

Consultations

 

 

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