How do you prove authority to act with the Welsh Revenue Authority for a land tax matter?

Introduction

Readers often want to know what counts as valid authority for an adviser to deal with the Welsh Revenue Authority (WRA) on a client’s behalf in a Land Transaction Tax matter. In practice, this usually comes up when a buyer, taxpayer or adviser needs confirmation that the WRA has processed an authority to act form and recognises the adviser as authorised to correspond about the case.

The source material here is not a dispute about tax liability itself. It is an administrative point: whether the WRA has accepted and processed authority for an adviser to act. That confirmation can matter because it affects who can speak to the WRA, receive correspondence and progress the matter efficiently.

The Question

In general terms, the issue was whether a confirmation email from the Welsh Revenue Authority could be added to the relevant client matter as evidence that the adviser had been authorised to act for the taxpayer in a Land Transaction Tax case.

The correspondence showed that the WRA had received an online authority to act request, processed it, and sent confirmation to both the taxpayer and the adviser.

Nick’s Explanation

Nick’s practical point was straightforward: the WRA confirmation should be kept with the relevant matter because it records that authority to act has been granted and processed.

In anonymised form, the key substance of the confirmation was that the WRA had received an online form authorising the adviser to act on the taxpayer’s behalf, had processed that request, and had issued confirmation to the parties involved.

That kind of confirmation is useful because it helps show:

• that authority to act was actually submitted;
• that the WRA processed the request;
• that the adviser is recognised for correspondence purposes; and
• that future contact with the WRA can proceed on the basis that the adviser is authorised.

Nick’s handling of the point was administrative rather than interpretive: if the authority confirmation has been received, it should be attached to the file or deal so there is a clear record of the adviser’s status.

The Law

Land Transaction Tax in Wales is governed principally by the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017. The Welsh Revenue Authority is the tax authority responsible for administering the tax.

As a matter of tax administration, a taxpayer may authorise an agent or adviser to act on their behalf. This is common across UK tax systems. In practice, the tax authority usually requires a formal authority process before it will discuss a taxpayer’s affairs with an adviser or send substantive correspondence to them.

The point is mainly one of tax administration and confidentiality rather than substantive liability. Without authority, the WRA may refuse to discuss the matter fully with the adviser. Once authority is in place, the adviser can generally correspond, provide information and receive updates within the scope of that authority.

The email also referred to the WRA’s view being non-binding guidance and noted that a fuller tax opinion may be sought through the WRA’s formal process. That reflects an important distinction in tax administration:

• administrative confirmations, such as authority to act, confirm process and status;
• general guidance may explain the WRA’s view but is not necessarily binding;
• a formal opinion process may provide something more reliable for return-filing purposes, subject to its terms; and
• anti-avoidance issues, including GAAR points, may remain matters for self-assessment and later review.

Analysis

Step by step, the position is fairly clear.

1. A taxpayer or client submitted an authority to act form to the WRA.

2. The WRA then confirmed that it had received and processed the request.

3. The WRA also stated that letters had been sent to the relevant parties confirming that position.

4. That means there is documentary evidence that the adviser has been recognised by the WRA for that matter.

5. Because the confirmation came from the public authority administering the tax, it is sensible to retain it on the case file as part of the audit trail.

From a legal and practical perspective, this does not determine the tax treatment of the transaction. It does not decide whether any relief applies, whether higher rates apply, or whether a return is correct. It simply confirms that the adviser is authorised to deal with the WRA in relation to the matter.

That distinction matters. Administrative approval to act is not the same as substantive approval of a tax analysis. If the underlying transaction raises technical Land Transaction Tax questions, those still need to be analysed under the legislation and any relevant WRA guidance or formal opinion process.

Outcome

The practical conclusion is that a WRA email confirming receipt and processing of an authority to act request is useful evidence that the adviser has authority to correspond on the taxpayer’s behalf. It should be kept on the relevant file or deal.

However, readers should not confuse that confirmation with a ruling on the tax consequences of the transaction. It is proof of representation status, not proof that a return position is correct.

Practical Steps

If you are checking your own position, the sensible next steps are:

• keep the WRA authority confirmation with the transaction file;
• check whether the authority covers the specific tax and matter in question;
• make sure the taxpayer and adviser both retain copies of any confirmation letters or emails;
• if the WRA has not yet updated its records, be ready to resend the authority details or quote the confirmation correspondence;
• separately analyse the actual Land Transaction Tax position, because authority to act does not answer the substantive tax question; and
• if the issue is complex, consider whether a formal WRA opinion or other specialist advice is needed.

Conclusion

If the Welsh Revenue Authority confirms that it has received and processed an authority to act form, that is strong practical evidence that the adviser is authorised to handle the Land Transaction Tax matter. Keep that confirmation on file, but remember that it only deals with representation and administration, not the underlying tax analysis.

Legal References Used

• Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017
• Welsh Revenue Authority administrative practice on authority to act and taxpayer correspondence
• Reference in the correspondence to the General Anti-Avoidance Rule (GAAR) in the context of WRA guidance and self-assessment

This page was last updated on 22 March 2026.

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