Mark Drakeford MS, Cabinet Secretary for Finance and Welsh Language
The "Welsh way of doing tax" is a collaborative, trust-based approach to tax, championed by the Welsh Revenue Authority (WRA). It focuses on supporting taxpayers to get things right first time, and it is guided by principles of Cydweithio (working together), Cadarnhau (certainty and consistency), and Cywiro (correcting errors). It is the ethos that has underpinned the collection and management of our devolved taxes since 2018.
In my written statement of 10 December 2024, I set out that the OBR had increased their forecast revenues for Land Transaction Tax in 2025-26. This increase included £2.6m of additional tax receipts due to additional resources being invested in the WRA.
The WRA is currently forecasting that by the end of this financial year that through compliance activity they will have collected £2.5m more this year than last year and protected an additional £100,000 of tax more than last year.
This goes to show that the Welsh way of doing tax is working. By investing in a system built on collaboration, transparency, and early engagement, we are securing fairer outcomes for taxpayers and for Wales as a whole.
These results also highlight the value of sustained investment in the WRA’s capability and capacity. The additional resource agreed for 2025/26 will allow the WRA to continue its work in minimising tax risk, protecting revenue that funds vital public services while maintaining the trust-based, preventative approach that is central to our devolved tax system.