Welsh Finance Secretary Mark Drakeford has published the new rates and bands for Wales’ first taxes in almost 800 years. Land Transaction Tax (LTT) and Landfill Disposals Tax (LDT) will be introduced on 1 April 2018, replacing Stamp Duty Land Tax and Landfill Tax, respectively.
Under the new rates for LTT, Wales will have the highest starting threshold for the property tax in the UK. Wales will also become the first country in the UK to introduce a new higher rate of landfill disposals tax, to deter people from disposing of waste illegally.
For landfill disposals tax, the following rates are planned:
|2018-19||2019-20 (assumed rate)|
|Unauthorised disposals rate||£133.45||£137.55|
For the first 2 years of LDT, the standard and lower rates will remain consistent with those for Landfill Tax. This will provide certainty and stability for businesses and reduce the risk of waste moving across the Wales-England border. The new unauthorised disposals rate will be set at 150% of the standard rate.
The relief from which charities benefited under Stamp Duty Land Tax will be retained.
The Finance Secretary also announced a shortlist of 4 new tax ideas – based on feedback from the public – which will be developed further this autumn. One proposal will be put to the UK government in 2018 to test the Wales Act powers. The 4 new ideas which will be explored further are:
- vacant land tax
- disposable plastic tax
- tourism tax
- levy to support social care.