As from 1 April 2015, the commencement of the Land and Buildings Transaction Tax (Scotland) Act 2013 means that Scottish land transactions are no longer within the scope of Stamp Duty Land Tax and will instead be subject to a new land an buildings transaction tax (LBTT). SDLT will, in due course, become a fully devolved tax since Wales is eventually heading in the same direction. Section 16 of the Wales Act 2014 will dis-apply stamp duty land tax in Wales on a date to be appointed by the Treasury.
While only a small number of lawyers in England and Wales conduct transactions in Scotland, a large number of them conduct transactions in England and in Wales, and so there will eventually be a need to get to grips with two sets of land tax rules, and two sets of tax returns. The change to be effected by the Wales Act 2014 is simple. It amends Part 4 of the Finance Act 2003 on SDLT stating simply that, in section 48 FA 2003 (which defines chargeable interests for the purposes of SDLT), the words “and Wales” are omitted from subsection (1)(a). (That subsection will read: “In this Part “chargeable interest” means (a) an estate, interest, right or power in or over land in England or Northern Ireland”).
A consultation on the replacement of SDLT in Wales with what will be called Land Transaction Tax has been published by the Welsh Assembly. Responses to the consultation are required by 6 May 2015. The consultation suggests proposals for a Land Transaction Tax to replace SDLT in Wales from April 2018.