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“Wales needs control of Stamp Duty Tax to boost Welsh economy” – Jane Hutt
The Minister said there is “overwhelming support” in Wales for the devolution of the tax – and called on the UK Government to make a positive announcement in the very near future on its devolution to Wales.
HM Treasury's consultation on the devolution to Wales of Stamp Duty Land Tax closed three weeks ago. The Welsh Government published its evidence to the consultation on 5th September.
During the consultation period, the Minister met representatives of Welsh businesses engaged in construction, property investment and related sectors, such as solicitors and accountants, to hear their views on Stamp Duty, and how it could be reformed in the future were it to be devolved to Wales.
The Minister revealed that a range of interesting and constructive ideas were put to the Welsh Government about how this tax could be reformed. Those proposals included:
- removing the 'slab' element of the tax;
- helping key groups, such as first time buyers;
- introducing different treatment for greenfield, brownfield and marginal land;
- offsetting the costs of delivering new environmental and other improvements; and
- reintroducing disadvantaged area relief.
The Welsh Government will work closely with businesses - and other stakeholders - to shape future Welsh taxes.
Jane Hutt said:
“We are not seeking the devolution of Stamp Duty Land Tax for the sake of it. We want this Tax devolved so that we can reform it to help first time buyers, boost the construction and building industry and help boost the Welsh economy.
“Let’s be clear - there is overwhelming support in Wales for the devolution of this tax from key members of the business community and from the Welsh public. During my meetings over the summer with those involved in the construction industry, I was encouraged by the level of engagement and the clear recognition from many that devolution of Stamp Duty Land Tax to Wales would be good for the Welsh economy.
“While it is clear that Stamp Duty is ripe for reform, we cannot make progress until the UK Government responds to the Silk Commission's first report. That is why I am continuing to press the UK Government for an announcement in the very near future.”