Welsh tax devolution has moved a step nearer after the UK and Welsh governments confirmed that they are ready for the transition to the new devolved taxes.
From 1 April 2018, stamp duty land tax and landfill tax will be replaced by land transaction tax and landfill disposals tax in Wales. Welsh rates of income tax will be introduced from 6 April 2019.
Welsh Government Finance Secretary, Professor Mark Drakeford, said: ‘The devolution of these taxes represents a significant milestone for Wales, helping us to make Wales a fairer nation and to grow the Welsh economy.’
Chief Secretary to the Treasury, Elizabeth Truss, added: ‘We are committed to giving the National Assembly for Wales more responsibility to raise its own funding. And that is why further income tax powers will follow next year. This will give the Welsh Government greater powers to shape their economy.’
The UK Government legislated for Stamp Duty Land Tax and Landfill Tax devolution in the Wales Act 2014 and in the Wales Act 2017 legislated to give the Welsh Government powers over Welsh rates of income tax from April 2019.
The Welsh rate of income tax will operate in a similar way to the Scottish rate of income tax, and will continue to be collected by HMRC. Revenue from the Welsh rates will go directly to the Welsh government.
