The government is to consult on proposals to devolve responsibility for Stamp Duty Land Tax (SDLT) to the National Assembly for Wales.

The move is in response to last November's report by the Commission on Devolution in Wales (Silk Commission) which made a total of 33 recommendations on options for devolving fiscal powers and improving the financial accountability of the Welsh Assembly.

The government says the consultation will be short and will be asking particularly for feedback from businesses, as handing over responsibility for SDLT to the Welsh Assembly has significant implications for the construction industry and housing market.

Devolution of SDLT to the Scottish government is already going ahead from April 2015, but the situation in Wales is seen as different because its border with England is more heavily populated. This means there are more significant issues facing businesses based on either side of the Welsh border if, potentially, different rates of tax are introduced.

Chief secretary to the Treasury, Danny Alexander said: 'There is a very strong case for devolving fiscal and economic levers to the Welsh Government, but it is right that we fully understand the potential impacts so that we can ensure that the decisions we take are right for Wales and for the UK as a whole.'

Estimates suggest devolving responsibility for SDLT to the Welsh Assembly would produce an income stream of around £200m a year.