Business
New Welsh taxes come into force
ON APRIL 1 2018, the first Welsh taxes for almost 800 years ‘went live’.
The new Land Transaction Tax (LTT) and Landfill Disposals Tax (LDT) will replace UK Stamp Duty Land Tax (SDLT) and Landfill Tax (LfT) respectively.
These taxes will be collected and managed by the Welsh Revenue Authority (WRA).
LAND TRANSACTION TAX
The Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 will legislate for LTT in Wales. The Cabinet Secretary for Finance, Mark Drakeford, announced the new LTT rates and bands alongside the draft budget in October 2017. However, in response to the UK Autumn Budget in November 2017, he revised the rates and bands for residential properties in December 2017.
LTT will be based on a marginal rate system like SDLT, which means the purchase price is taxed at a specific rate which applies to that band. For example, table 1 below shows that a £190,000 residential property would be exempt from the first £180,000 with LTT charged on the remaining £10,000 at 3.5%.
RESIDENTIAL PROPERTIES
The proposed LTT rates and bands for residential properties are different to those that are currently in place in Wales under SDLT. As shown, residential properties up to £180,000 are exempt from LTT in Wales whilst it is currently properties up to £125,000 for SDLT.
The Cabinet Secretary for Finance commented that “this new threshold, which is £55,000 higher than the starting threshold for SDLT will reduce the tax burden for around 24,000 homebuyers in Wales.” Additional rate for residential properties.
In November 2015, the UK Government announced the higher rates of SDLT would apply from 1 April 2016 to purchases of additional residential properties, such as second homes and buy-to-let properties.
In response to this, the Welsh Government decided to impose an additional rate for LTT of 3% on all price thresholds.
NON-RESIDENTIAL PROPERTIES
There are also differences in rates and bands between LTT and SDLT for non-residential properties. LTT in Wales will include an additional rate for properties over £1 million. Individuals will pay less LTT for properties between £150,000 and £250,000 when compared to SDLT but more for properties over £1 million.
The price threshold for incurring a 2% LTT rate for non-residential lease rents is £3 million lower than SDLT. The Welsh Government explained this is due to generally lower lease rates in Wales meaning very few transactions would pay the top rate of LTT if it was consistent with SDLT.
LANDFILL DISPOSALS TAX
The Landfill Disposals (Wales) Act 2017 legislates for LDT, which will replace UK LfT in Wales from 1 April 2018. It will be a tax on the disposal of waste to landfill payable by landfill site operators. LDT will consist of a lower and standard rate like LfT but will also include a new unauthorised disposals rate.
In the Welsh Government 2018-19 budget, the Cabinet Secretary for Finance confirmed that the lower and standard rates of tax will remain consistent with LfT for 2 years with the unauthorised disposals rate set at 150% of the standard rate.
Professor Drakeford said: “The Landfill Disposals Tax Communities Scheme recognises there can be a negative impact for communities through the disposal of waste.
“Funding from the scheme will directly benefit the environment for those who live near a landfill site helping to offset the impact of waste to landfill.
“Grants of £5,000 to £50,000 will be available to projects in 2 bidding rounds every year and one project will receive funding of up to £250,000 a year.”
WELSH REVENUE AUTHORITY
The Welsh Revenue Authority (WRA) has been established to manage and collect devolved taxes in Wales. The WRA was established in October 2017 and is the first non-ministerial department to be set up by the Welsh Government. The authority will operate independently from Welsh Government and be accountable to the Assembly.
Business
Bid to convert office space into chocolate factory, salon and laundrette
A CALL for the retrospective conversion of office space previously connected to a Pembrokeshire car hire business to a chocolate factory, a beauty salon and a laundrette has been submitted to county planners
In an application to Pembrokeshire County Council, Mr M Williams, through agent Preseli Planning Ltd, sought retrospective permission for the subdivision of an office on land off Scotchwell Cottage, Cartlett, Haverfordwest into three units forming a chocolate manufacturing, a beauty salon, and a launderette, along with associated works.
A supporting statement said planning history at the site saw a 2018 application for the refurbishment of an existing office building and a change of use from oil depot offices to a hire car office and car/van storage yard, approved back in 2019.
For the chocolate manufacturing by ‘Pembrokeshire Chocolate company,’ as part of the latest scheme it said: “The operation comprises of manufacturing of handmade bespoke flavoured chocolate bars. Historically there was an element of counter sales but this has now ceased. The business sales comprise of online orders and the delivery of produce to local stockist. There are no counter sales from the premises.”
It said the beauty salon “offers treatments, nail services and hairdressing,” operating “on an appointment only basis, with the hairdresser element also offering a mobile service”. It said the third unit of the building functions as a commercial laundrette and ironing services known as ‘West Coast Laundry,’ which “predominantly provides services to holiday cottages, hotels and care homes”.
The statement added: “Beyond the unchanged access the site has parking provision for at least 12 vehicles and a turning area. The building now forms three units which employ two persons per unit. The 12 parking spaces, therefore, provide sufficient provision for staff.
“In terms of visiting members of the public the beauty salon operates on an appointment only basis and based on its small scale can only accommodate two customers at any one time. Therefore, ample parking provision exists to visitors.
“With regard to the chocolate manufacturing and commercial laundrette service these enterprises do not attract visitors but do attract the dropping off laundry and delivery of associated inputs. Drop off and collections associated with the laundry services tend to fall in line with holiday accommodation changeover days, for example Tuesday drop off and collections on the Thursday.
“With regard to the chocolate manufacturing ingredients are delivered by couriers and movements associated with this is also estimated at 10 vehicular movements per week.”
The application will be considered by county planners at a later date.
Business
First Minister criticised after ‘Netflix’ comment on struggling high streets
Government announces 15% support package but campaigners say costs still crushing hospitality
PUBS, cafés and restaurants across Wales will receive extra business rates relief — but ministers are facing criticism after comments suggesting people staying home watching Netflix are partly to blame for struggling high streets.
The Welsh Government has announced a 15% business rates discount for around 4,400 hospitality businesses in 2026-27, backed by up to £8 million in funding.
Announcing the package, Welsh Government Finance Secretary Mark Drakeford said: “Pubs, restaurants, cafés, bars, and live music venues are at the heart of communities across Wales. We know they are facing real pressures, from rising costs to changing consumer habits.
“This additional support will help around 4,400 businesses as they adapt to these challenges.”
The announcement came hours after Eluned Morgan suggested in Senedd discussions that changing lifestyles — including more time spent at home on streaming services — were contributing to falling footfall in town centres.
The remarks prompted political backlash.
Leader of the Welsh Liberal Democrats, Jane Dodds, said: “People are not willingly choosing Netflix over the high street. They are being forced indoors because prices keep rising and wages are not.
“Blaming people for staying at home is an insult to business owners who are working longer hours just to survive.”
Industry groups say the problem runs deeper than consumer behaviour.
The Campaign for Real Ale (CAMRA) welcomed the discount but warned it would not prevent closures.
Chris Charters, CAMRA Wales director, said: “15% off for a year is only the start. It won’t fix the unfair business rates system our pubs are being crushed by.
“Welsh publicans need a permanent solution, or doors will continue to close.”
Across Pembrokeshire, traders have repeatedly told The Herald that rising energy bills, wage pressures and rates — rather than a lack of willingness to go out — are keeping customers away.
Several town centres have seen growing numbers of empty units over the past year, with independent shops and hospitality venues reporting reduced footfall outside the main tourist season.
While ministers say the relief balances support with tight public finances, business groups are calling for wider and longer-term reform.
Further debate on rates changes is expected later this year.

Business
Pub rate relief welcomed but closures still feared
CAMRA warns one-year discount is only a sticking plaster as many Welsh locals face rising bills
A BUSINESS rates discount for Welsh pubs has been welcomed as a step in the right direction — but campaigners warn it will not be enough to stop more locals from shutting their doors.
The Campaign for Real Ale (CAMRA) says the Welsh Government’s decision to offer a 15 per cent reduction on business rates bills for the coming year will provide short-term breathing space for struggling publicans.
However, it believes the move fails to tackle deeper problems in the rating system that continue to pile pressure on community pubs across Wales, including in Pembrokeshire and Carmarthenshire.
Chris Charters, Director of CAMRA Wales, said: “Today’s announcement from the Finance Secretary that pubs will get 15% discount on their business rates bills is a welcome step.
“However, many pubs still face big hikes in their bills due to the rates revaluation which could still lead to more of our locals in Wales being forced to close for good.
“15% off for a year is only the start of supporting pubs with business rates. It won’t fix the unfair business rates system our pubs are being crushed by.”
He added: “Welsh publicans need a permanent solution, or doors will continue to close and communities will be shut away from these essential social hubs that help tackle loneliness and isolation.”
Mounting pressure on locals
Under plans announced by the Welsh Government, pubs will receive a temporary discount on their rates bills for the next financial year.
But CAMRA argues that many premises are simultaneously facing sharp increases following the latest revaluation, which recalculates rateable values based on property size and trading potential.
For some smaller, rural venues, especially those already operating on tight margins, the increases could wipe out the benefit of the relief entirely.
Publicans say they are also contending with rising energy costs, higher wages, supplier price hikes and changing customer habits since the pandemic.
In west Wales, several long-standing village pubs have either reduced their opening hours or put their businesses on the market in the past year, with landlords warning that overheads are becoming unsustainable.
Community role
Campaigners stress that the issue goes beyond beer sales.
Pubs are often described as the last remaining social spaces in small communities — hosting charity events, sports teams, live music and local groups.
In parts of rural Pembrokeshire, a pub can be the only public meeting place left after the loss of shops, banks and post offices.
CAMRA says supermarkets and online retailers enjoy structural advantages that traditional pubs cannot match, making it harder for locals to compete on price.
The organisation is now calling on ministers to introduce a permanently lower business rates multiplier for pubs, rather than relying on short-term discounts.
Long-term reform call
CAMRA wants whoever forms the next Welsh administration to commit to fundamental reform of the rating system, arguing that pubs should be recognised as community assets rather than treated like large commercial premises.
Without change, it warns, the number of closures is likely to accelerate.
Charters said: “This is about protecting the future of our locals. Once a pub shuts, it rarely reopens. We can’t afford to lose any more.”
For many communities across west Wales, the fear is simple: temporary relief may buy time — but it may not be enough to save the local.
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