The Wales Act 2014 gave new powers to the Welsh Assembly relating to taxation and borrowing. It provides for the full devolution of SDLT and landfill tax from April 2018. The Wales Act 2014, together with the Wales Act 2017, also provides for the partial devolution of income tax.
The Command Paper: Wales Bill: Financial Empowerment and Accountability – published alongside the Wales Bill in 2014 – required us to begin to forecast Welsh taxes alongside Autumn Statement 2014 and twice a year thereafter. This currently includes forecasts for stamp duty land tax, landfill tax, aggregates levy and the Welsh rate of income tax.
The Tax Collection and Management (Wales) Act 2016 created a new Welsh Revenue Authority, which will oversee the collection of devolved taxes in Wales. The Welsh Government also announced its intention to replace SDLT with a ‘land transaction tax’ and landfill tax with a ‘landfill disposals tax’.’
In December 2016 the Welsh and UK Governments agreed the Welsh Government fiscal framework. This sets out our role in continuing to produce forecasts for the whole of the UK public finances including revenues from taxes devolved to Wales. The Wales Act 2017 sets out the OBR’s right to information from the devolved Welsh authorities.
We have agreed a Memorandum of Understanding with the Welsh Government. It sets out the arrangements needed for effective working, covering each institution’s key responsibilities, coordination of the forecast process, and the process for information sharing.