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Business

New Welsh taxes come into force

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Mark Drakeford: Landfill tax to benefit affected communities

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

Work to turn Cleddau Bridge hotel into homes to begin soon

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WORK is expected to start soon on a scheme for 35 affordable homes on the “eyesore” site of the fire-ravaged former Cleddau Bridge Hotel, Pembroke Dock.

In a prime location at one of the entrances to Pembroke Dock the former Cleddau Bridge Hotel has been a derelict site since a fire in March 2019, which brought emergency services from as far afield as Ammanford, Aberystwyth and Swansea.

The site has been purchased by Castell Group Property Specialists who specialise in delivering affordable housing in South Wales and have undertaken a joint development deal with Pembrokeshire County Council (PCC) and that deal was agreed back in April 2024.

Late last year, Castell Group Property Specialists, through agent Hayston Developments & Planning Ltd, was granted permission by the council’s planning committee to demolish what is left of the hotel, with a development of affordable housing units, with landscaping and ecological enhancements, the housing being 100 per cent affordable, in a mix of a mix of social rent and affordable housing.

Initial discussions with the council were for 38 affordable units, which has been lowered to 35 in a mix of 16 one-bed units, 11 two-bed units, six three-bed units and two four- bed units.

The 35 homes will range in size and consist of various affordable housing, such as social, supported, and intermediate rent.

All properties will be owned and rented by Pembrokeshire County Council.

Speaking at the December 2024 planning meeting before permission was granted, agent Andrew Vaughan-Harries said: “It’s going to be a new site of council houses, a private package to develop these 35 houses; if and when these houses are built they will be acquired by Pembrokeshire County Council as the next phase of housing stock. It will be your council houses for Pembroke Dock.”

Castell Group, in partnership with Pembrokeshire County Council, has now completed the sale for the redevelopment of the site, and will now move to the next phase in bringing the site back to life, with the project is expected to break ground shortly.

Dorian Payne, Managing Director at Castell Group said: “We are delighted to reach this critical stage in the redevelopment of the Cleddau Bridge Hotel site.

“We are excited to move forward with the construction in collaboration with Pembrokeshire County Council.”

Cllr Michelle Bateman, Cabinet Member for Housing, said: “This site has been derelict since the fire in 2019 so it’s fantastic news that it will now be developed into high quality affordable housing.

“We are committed to increasing the supply of affordable housing and this development, in one of our largest towns, will play a part in meeting the demand for housing in Pembrokeshire.”

Cllr Joshua Beynon, local member, added: “I am really pleased to see the council developing this piece of land that has been left as an eyesore since it caught fire some years ago. Housing is what we need and I’m really pleased to see it happening here.”

A previous planning application for the demolition of the hotel and siting of a residential care home and linked bungalows was submitted in October 2022, subsequently granted permission in February 2023, but never progressed.

Mid and West Wales Fire and Rescue Service has previously said the 2019 fire was started by a deliberate act.
Following a fire investigation, Dyfed-Powys Police said they found there to be insufficient evidence to identify a suspect.

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Business

Loss-making Haverfordwest Airport has official new operators

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HAVERFORDWEST’S airport officially has a private operator, which has leased the previously loss-making council-owned facility, promising to “breathe new life into such an iconic gateway”.

Back in 2024, members of Pembrokeshire County Council’s Cabinet supported the leasing of the council-run Withybush Airport as part of plans to make the facility cost-neutral to the authority.

In 2023, Cabinet members heard the financial position at the council-supported Haverfordwest/Withybush airport deteriorated in 2022/23, with an out-turn position for 2022/23 of £238,000.

That loss was been reduced to an expected £119,000 for 2023/24 “following an extensive review of the operations of the airport”.

Cabinet members, back in 2024, heard there would be a requirement on leases to obtain/keep a CAA [Civil Aviation Authority] Cat II licence and at a market rent, which would “make the airport cost-neutral to the council from the day the lease is signed, whilst also ensuring that an operational airport remains for Pembrokeshire to benefit from”.

Deputy Leader Cllr Paul Miller at the time said: “The airport is a valuable facility and one I’m keen to maintain; I personally recognise that maintaining an ongoing public subsidy is not something we’re particularly keen to do indefinitely.”

He added: “What the lease, we believe, will do is maintain a franchising CAT II airport in Haverfordwest and remove our liability from day one.”

At the March 2025 meeting of Pembrokeshire County Council’s Services Overview and Scrutiny Committee, members heard the final paperwork was “on track” to hand the airport over to the new operators by the start of April, with the facility becoming “cost-neutral” to the authority “from the moment it’s handed over to the operator”.

On April 1, Haverfordwest Airport Limited took the lease on the airport, officially taking over its management from the council.

Haverfordwest Airport Limited has said: “We are absolutely thrilled to be a part of this exciting new chapter as the proud operators of Haverfordwest Airport.

“This is a remarkable opportunity for us to breathe new life into such an iconic gateway, and we are committed to enhancing the airport’s facilities and services for the benefit of the community, visitors, and businesses alike.

“We also recognise the importance of Haverfordwest Airport to the emergency services, and we are dedicated to continuing our support for their vital operations, 24/7, 365 days a year.

“We would like to acknowledge the hard work of Pembrokeshire County Council in getting us to this point, and we look forward to driving the airport’s growth, innovation, and connectivity in the years ahead.”

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Business

£20m investment to unlock Cardiff Airport’s potential and drive South Wales growth

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THE WELSH Government has confirmed the first phase of a major new investment package for Cardiff Airport, pledging £20 million to boost economic development and secure the long-term future of the site.

The funding marks the beginning of a ten-year programme designed to harness the airport’s capacity as a strategic asset for Wales. The scheme is expected to drive further growth across the South Wales region and create new opportunities in aviation, logistics, and employment.

Announcing the investment on Wednesday (Apr 2), Cabinet Secretary for Economy, Energy and Planning, Rebecca Evans MS, said the Welsh Government had completed due diligence on the proposals, including a review by the Competition and Markets Authority.

Ms Evans said: “We remain committed to the growth of this essential economic infrastructure, which currently generates over £200 million in Gross Value Added (GVA) annually and supports thousands of jobs in the South Wales region.”

Plans under the investment include potential development of aircraft maintenance facilities, improved cargo handling capabilities, and support for general aviation. Some of the funding will also be used to explore new air routes, with an emphasis on improving connectivity and Wales’ presence in global markets.

The £20 million commitment follows a previous announcement in July 2024, where the Welsh Government outlined its ambition to make Cardiff Airport a catalyst for economic expansion in Wales. This latest funding, according to Ms Evans, will help the region realise that vision and support a “vibrant and outward-facing” national economy.

Officials will monitor the impact of the funding throughout the ten-year period, with performance reviews planned and a focus on minimising subsidies while delivering value for money.

A record of the financial award will be published on the UK subsidy transparency database.

However, the decision has sparked criticism from the Welsh Conservatives, who renewed their call for the airport to be sold to the private sector.

Welsh Conservative Shadow Cabinet Secretary for Transport and Infrastructure, Peter Fox MS, said: “The Labour Government’s decision to inject the first £20 million of a planned £200 million into Cardiff Airport will bring the total amount of Welsh taxpayer money invested to over £200 million.

“Cardiff Airport is a financial burden on the Labour Welsh Government and Welsh taxpayers, and it is time for Labour to finally do the right thing and sell the airport to the private sector.

“Ministers in Cardiff Bay lack the essential expertise to manage an airport. That is why an experienced corporation in the private sector, with proven industry knowledge, would be better placed to ensure the airport not only survives but thrives.”

The Herald understands that further investment decisions will be made as the programme progresses, depending on the outcomes and economic impact of the initial phase.

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