Tax Advisory Group meeting: 15 March 2018

Tax Advisory Group

• Chair: Andrew Jeffreys, Director, Welsh Treasury
• Andrew Evans, Geldards LLP
• Frank Haskew, Institute of Chartered Accountants in England and Wales
• Cllr Anthony Hunt, Welsh Local Government Association
• Leighton Reed, Institute of Chartered Accountants in England and Wales

Other attendees

• Leighton Jenkins, CBI Wales, representing Ian Price
• Matt Williams, Federation of Small Businesses, representing Janet Jones

Officials attending

• Andrew Jeffreys, Director, Welsh Treasury
• Georgina Haarhoff, Deputy Director, Tax Strategy, Policy and Engagement
• Becca Godfrey, Chief Strategy Officer, Welsh Revenue Authority, representing Dyfed Alsop
• Andy Fraser, Head of Tax Strategy, Welsh Treasury
• Laura Fox, Tax Policy & Legislation Lead, Welsh Treasury
• Nicola Moorhouse, Tax Policy Lead, Welsh Treasury
• Lu Toscano-Davies, Welsh Treasury (Secretariat)

Apologies

• Mark Drakeford AM, Cabinet Secretary for Finance
• Janet Jones, Federation of Small Businesses (Matt Williams representing)
• Robert Lloyd Griffiths, Institute of Directors
• Martin Mansfield, TUC, Wales
• Ruth Marks, Wales Council for Voluntary Action
• David Phillips, Institute for Fiscal Studies
• Kay Powell, The Law Society
• Ian Price, CBI Wales (Leighton Jenkins representing)
• Dr Victoria Winckler, The Bevan Foundation
• Dyfed Alsop - Chief Executive, Welsh Revenue Authority
• Debra Carter, Deputy Director, Local Government Strategic Finance

1. Andrew Jeffreys welcomed attendees and chaired the meeting on behalf of the Cabinet Secretary for Finance, who was unable to attend due to illness.

2. The note of the previous meeting (20 November 2017) had been circulated to members prior to the meeting. The group confirmed the note was an accurate summary of the discussion.

3. Georgina Haarhoff updated the members on progress in developing new taxes, describing the process agreed with the UK government. The Welsh Government would progress a vacant land tax, while continuing to consider the scope for the other 3 new tax ideas (disposable plastics tax, social care levy, tourism tax).

4. Andy Fraser outlined the main issues under consideration at this stage for a vacant land tax which would help to bring land suitable for development into productive use and to promote supply of housing and regeneration in line with the Welsh Government’s national strategy Prosperity for All.

5. The group discussed a number of issues relating to a vacant land tax, including the purpose, potential scope, effectiveness and administration, and advised on stakeholders who should be given the opportunity to contribute their thinking in developing the tax.

6. Georgina Haarhoff, Nicola Moorhouse and Laura Fox summarised the current position with the other 3 tax ideas.

7. Becca Godfrey provided an update on the progress made by the WRA in readiness for the introduction of land transaction tax and landfill disposals tax on 1 April. Registration of solicitors was well underway and a land transaction tax calculator was available on the WRA's website. Stakeholder events were being held across Wales to further raise awareness.

8. Andrew Jeffreys noted that, once the Welsh taxes and the Welsh Revenue Authority were in operation in April, the main focus of tax policy development in Wales would move to the next phase, including Welsh rates of income tax and the work on new taxes.

9. No items were raised under AOB.

10. Andrew Jeffreys thanked the attendees for their helpful and constructive contributions.

11. The next meeting would take place on 9 July 2018.