The Welsh government and the National Assembly for Wales will become responsible for some of the taxes paid in Wales from that date, including income tax from April 2019.

From 1 April 2018, land transaction tax (LTT) will replace SDLT and will be collected by the Welsh Revenue Authority. HMRC will not accept SDLT returns for land transactions in Wales with an effective date of transaction on or after 1 April 2018.

Under the new LTT rates the starting threshold for residential rates will be set at £180,000 from 1 April 2018, which is £55,000 higher than the starting threshold for SDLT. From £180,000 - £250,000, the rate is 3.5%; £250,000 - £400,000 is 5%; £400,000 - £750,000 is 7.5%; £750,000 - £1.5m is 10%; and over £1.5m is 12%.

The Welsh government said the average homebuyer in Wales will pay more than £500 less tax than under SDLT, while around 90% of homebuyers in Wales will either pay the same or less tax.

From 1 April 2018, landfill disposals tax will replace landfill tax in Wales. This will be administered by the Welsh Revenue Authority, and will be payable by landfill operators in Wales.

From 6 April 2019, Welsh rates of income tax will be introduced. Income tax will continue to be collected by HMRC, and the UK and Welsh governments are advising that taxpayers need take no action as long as HMRC has their correct address.

Welsh government finance secretary, Professor Mark Drakeford, said: ‘The devolution of these taxes represents a significant milestone for Wales, helping us to make Wales a fairer nation and to grow the Welsh economy.’

Elizabeth Truss, chief secretary to the Treasury, said: ‘We are committed to giving the National Assembly for Wales more responsibility to raise its own funding. And that is why further income tax powers will follow next year. This will give the Welsh government greater powers to shape their economy.’

report by Pat Sweet