Contributing to your CPD?
If this article is supporting your professional development, it can count towards your verifiable CPD hours. Use the pop up at the bottom right corner of your screen to add reading this article as an activity to your online CPD record.
The intention is that the relief will broadly be equivalent to stamp duty land tax (SDLT) relief available in special tax sites in England. However, LTT relief is subject to six key differences, including the following:
- it can only be claimed in relation to land within the designated special tax site and can allow for full relief and partial relief; and
- relief related to alternative finance arrangements will not follow SDLT in making a ‘relevant person’ liable to file the further return and pay LTT where the relief is withdrawn.
ICAEW’s primary concern is whether the draft legislation delivers the Welsh government’s intended outcome for full and partial relief.
The decision to take a different approach from SDLT is a policy matter for the Welsh government. The different policy for alternative finance arrangements, is because the responsibility for making a further return already differs from the SDLT rules.
ICAEW believes that adopting a different policy to that in England creates scope for confusion about the extent to which relief is available, and who is responsible for compliance. The extra complication of the proposed relief may discourage investment.
The Tax Faculty
ICAEW's Tax Faculty is recognised internationally as a leading authority and source of expertise on taxation. The faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.
More from the Tax Faculty
Stay up to date with the latest developments in tax by signing up to the Tax Faculty's weekly e-newsletter
Comprehensive support for Tax practitioners each month from the Tax Faculty and expert contributors.
Expert advice from the Tax Faculty's technical managers on all the developments in tax policy and practice.