You are viewing 1 of your 1 free articles
Welsh Government announces vacant land tax plans
The Welsh Government has announced plans for a tax on unused plots in a bid to prevent land banking.
Welsh Government finance minister Mark Drakeford unveiled the vacant land tax today.
It would apply to land with planning permission for development or sites within local development plans where construction work has not been started.
Mr Drakeford said: “Housing is a priority for the Welsh Government. A tax on vacant land could prevent the practice of land banking and land not being developed within the expected timescales.
“The Republic of Ireland vacant sites levy provides a useful starting point for how a vacant land tax could work in Wales.”
READ MORE
A levy allowing councils in Ireland to charge 3% of the market value of vacant sites left undeveloped in 2018 came into force last month – with the rate to rise to 7% in 2019.
The vacant land tax will be used to test new Welsh Government powers to set taxes arising from the Wales Act 2014.
It was first announced as part of a shortlist of four taxes to test the new powers at the Welsh Government’s draft Budget in October, along with a social care levy, a disposable plastics tax and a tourism tax.
But the vacant land tax has been selected for its narrow focus and to help speed up development and regeneration.
If approved by the Welsh Assembly, it will need to be voted through by MPs in Westminster before coming into effect.
Aaron Hill, assistant director of policy and public affairs at Community Housing Cymru, said: “We welcome recognition from the finance secretary that more needs to be done to help housing associations and others to secure land to build homes.
“However, the devil will be in the detail of these proposals, and there is a danger that a tax could be counter-productive and lead to higher costs or, in fact, decrease supply.”
