From 1 April 2018, Wales will collect its first national taxes for almost 800 years, in the latest in a series of wider UK devolutionary measures.
From next April, Stamp Duty Land Tax (SDLT) will be replaced with a new Land Transaction Tax (LTT) in Wales. The LTT will preserve the essential structure of SDLT, but with some key differences.
Under proposals announced in the Welsh outline Draft Budget 2018-19, the starting threshold for LTT will be the highest in the UK and individuals seeking to buy lower value residential property in Wales will pay little or no tax.
For residential properties priced between £0 and £150,000, a rate of 0% will apply, while homes priced between £150,000 and £250,000 will attract a rate of 2.5%.
However, residential properties priced between £250,000 and £400,000 will be subject to a main rate of 5%.
The proposed rates can be viewed in full here.
The Welsh Draft Budget also outlined plans for a new Landfill Disposals Tax (LDT), which will replace Landfill Tax in Wales.
The Association of Accounting Technicians (AAT) has separately called on Chancellor Philip Hammond to switch liability for SDLT in England to property sellers rather than buyers, in the forthcoming Autumn Budget.
Meanwhile, following the devolution of the Scottish Rate of Income Tax in April 2016, and further devolved powers over Air Passenger Duty and Aggregates Levy in April 2017, the Scottish government is reportedly set to outline plans in its Draft Budget to make its tax system ‘more progressive’.
Some experts believe that Derek Mackay, Finance Secretary for Scotland, could announce an increase in income tax for higher rate taxpayers. The Scottish Draft Budget will be delivered on 14 December.