Email not displaying correctly? View it in your browser.

Briefings

Welsh Briefing: Collection and management of devolved taxes in Wales

Date: 18/11/14

Collection and management of devolved taxes in Wales

Dear Members

You will be aware that the UK Government is devolving new financial responsibilities to the Welsh Government to include powers to borrow for investment in strategic capital infrastructure and powers relating to taxation.

The Wales Bill is expected to receive Royal Assent by the end of this year.

In preparation for this the Welsh Government has issued a White Paper (see link below) and is seeking comments by 15th December 2015.

The White Paper largely deals with the establishment of a Welsh Revenue Authority (Awdurdod Cyllid Cymru). The purpose of the WRA is the collection of devolved taxes and most of the proposals in the White Paper simply attempt to replicate powers currently available to HMRC.

The White paper can be read at http://cch-info.co.uk/F4E-2XRB6-BZQFG0-1C0S93-1/c.aspx

As such members may not have specific views on the subject. However, if members wish HBF to make representations on their behalf, can you let me have your views by 10th December 2014 at Michael.powell@hbf.co.uk.

Whilst the White Paper largely deals with some prosaic tax matters, there are a few sections worthy of note as follows:-

  • The new powers will enable the Welsh Government to legislate to create Welsh replacements for Stamp Duty Land Tax and Landfill Tax. There is no obligation to create replacement taxes but, as the Welsh block grant will be reduced by the existing monies raised by these taxes, it is likely that they will choose to replace them. The replacement is scheduled for April 2018 and further consultations are promised.
  • Non Domestic Rates will be devolved by April 2015.
  • Page 18 of the White paper sets out some proposed “Taxpayer Obligations” which includes self-assessment which might cause members concerns when linked to penalties for non-compliance.
  • Pages 37 & 38 set out some proposals for dealing with circumstances where a tax liability is disputed and is essentially proposing a “pay first” principle. Members may feel that the right to apply to postpone disputed taxes is needed.

Regards

Michael Powell, Finance Director.