Administrative Changes

• It makes changes to how the Welsh Revenue Authority is run, namely committee memberships, how tasks are delegated, voting rights and decision-making responsibilities.
• The WRA will be able to withhold repayments (i.e. when someone believes they’ve overpaid tax), subject to an investigation. The WRA would also have to explain their decisions. Under current rules, repayments have to be made immediately and recovered afterwards by the WRA if incorrect.
• It clarifies how late payment interest is calculated.

Data Sharing

It makes it easier for the Welsh Revenue Authority to share information and data, which may help tax planning and economic policies.

This change will also allow the WRA to share data with councils related to the Overnight Visitor Levy (aka. tourist tax) and properties that may be liable for council tax premiums (i.e. second homes). This information can’t be passed on without WRA consent, and doing so without permission would be considered a criminal offence.

Land Transaction Tax

• Leaseholders buying out the freehold on their property (”collective rights”) won’t be charged the higher rates of Land Transaction Tax.
• Similarly, someone transferring a property they own from individual ownership to shared ownership won’t be counted as a “buyer” and charged higher rates.
• It closes potential loopholes to avoid LTT relating to sale and leaseback arrangements involving bare trusts.
• Land Transaction Tax reviews and appeals will apply to Crown properties/land in the same way as other properties. As things stand, Crown properties have fewer appeal rights than other properties.
• The WRA will have extra powers to check and monitor reliefs and repayments relating to Land Transaction Tax.

Landfill Disposals Tax

• The law will be clarified to exclude drainage layers and pipework/engineering associated with controlling liquids and gases from Landfill Disposals Tax calculations.
• The WRA will be able to carry out inspections of premises related to Landfill Disposals Tax – without the permission of the owner/occupier, or the authority of a tribunal – with seven days’ notice. They can do so if they believe evidence of landfill tax liability (or something similar, such as unauthorised waste disposal) is going to be removed.