Technical Guidance on Taxpayer Information under Welsh Tax Law
How the Welsh Revenue Authority protects taxpayer information
The Welsh Revenue Authority (WRA) must keep protected taxpayer information confidential and can only use or disclose it where the law allows. This applies not just to WRA staff, but also to former staff, contractors and others working on the WRA’s behalf. Wrongful disclosure can be a criminal offence, and any sharing of information must also comply with other laws such as data protection and human rights rules.
- Protected taxpayer information is information held by the WRA, or by someone carrying out WRA functions, that could identify a person.
- The starting point is that this information must not be disclosed unless there is a clear legal gateway, such as consent, court proceedings, crime prevention, regulatory purposes or service provision linked to WRA functions.
- The confidentiality duty covers current and former WRA staff, committee members, contractors and others providing services or exercising delegated functions for the WRA.
- Relevant officials must formally acknowledge their duty of confidentiality, and unlawful disclosure may amount to a criminal offence unless a legal defence applies.
- In practice, the key questions are whether the information is protected, whether the person handling it is covered by the duty, and whether there is a specific legal basis for any use or disclosure.
- Even if disclosure is allowed under Welsh tax law, it may still need to satisfy other legal rules, including data protection and human rights requirements.
Scroll down for the full analysis.
Read the original guidance here:
Technical Guidance on Taxpayer Information under Welsh Tax Law
How the Welsh Revenue Authority must protect taxpayer information
This page explains the rules in the Tax Collection and Management (Wales) Act 2016 on how the Welsh Revenue Authority (WRA) may use, share and protect taxpayer information. These rules matter because information given for Land Transaction Tax or other devolved taxes is not free for the WRA or its contractors to use as they wish. The starting point is confidentiality, with limited legal gateways for disclosure.
What this rule is about
The source material deals with “protected taxpayer information”, often shortened to PTI. In broad terms, this means information the WRA has obtained in connection with its functions which could identify a person.
The rules are aimed at two linked issues:
- when the WRA may use information it holds, and
- when people working for or on behalf of the WRA may disclose that information to others.
This is not just an internal policy issue. The guidance says there is a statutory duty of confidentiality, and wrongful disclosure can be a criminal offence.
What the official source says
The guidance says the WRA may only use information it has acquired in connection with its functions, subject also to any international obligations of the UK that limit or prevent use of that information.
PTI is defined as information held by the WRA, or by a person to whom the WRA has delegated functions, which could lead to a person being identified. The guidance also makes clear that some information is outside this definition, including information about the WRA’s internal administrative arrangements and information relating to a member of WRA staff.
The guidance says “relevant officials” must keep PTI confidential. This covers:
- current and former WRA staff, and members of WRA committees or sub-committees, and
- current and former individuals exercising functions or providing services on behalf of the WRA, including those supporting delegated functions.
The general rule is that PTI must not be disclosed. But disclosure is allowed where the law specifically permits it. The guidance lists a number of permitted circumstances, including:
- where each person to whom the information relates has consented
- to obtain services connected with a WRA function, including shared services and contracts with public or private sector providers
- for criminal investigations, criminal proceedings, or the prevention or detection of crime
- to a relevant regulatory body
- for civil proceedings
- where needed for a court order or tribunal proceedings
- to a person exercising functions on behalf of the WRA for those purposes, such as a contractor
The guidance also says that relevant officials with access to PTI must make a formal declaration acknowledging their duty of confidentiality as soon as possible after appointment.
If a relevant official unlawfully discloses PTI, that may amount to a criminal offence. The guidance notes two possible defences:
- the person reasonably believed the disclosure was lawful, or
- the information had already been lawfully made public.
The burden of proving those matters falls on the person charged.
Finally, the guidance says these TCMA rules sit alongside other legal restrictions, including the Data Protection Act 1998, the Human Rights Act 1998 and the EU General Data Protection Regulation.
What this means in practice
For most taxpayers, the practical message is simple: information given to the WRA for tax purposes is protected, and routine disclosure is not allowed.
That does not mean the information can never be shared. The WRA may still pass information to others where there is a recognised legal basis. For example, it may use service providers, comply with court processes, or disclose information for criminal investigations. But those disclosures must fit within a permitted category.
The guidance also shows that confidentiality obligations extend beyond direct WRA employees. Contractors, delegated function holders, and others working on the WRA’s behalf may also be bound by the same statutory confidentiality rules.
For advisers and conveyancers, this matters when clients ask who may see information included in tax returns, correspondence, or supporting documents. The answer is not “nobody outside the WRA”, but nor is it “any public body that asks”. The question is whether there is a lawful route for the use or disclosure in question.
How to analyse it
A sensible way to approach the issue is to ask these questions in order:
- Is the information “protected taxpayer information”? In other words, is it held by the WRA or a person acting under delegated WRA functions, and could it identify a person?
- Is the person handling it a “relevant official”? The confidentiality duty applies specifically to that category.
- Is the proposed step a use of information, a sharing of information, or a disclosure of information? The guidance refers to all three, and the legal basis may matter.
- Is there a specific legal permission for the disclosure? The default position is no disclosure unless the law allows it.
- If consent is relied on, has each person to whom the information relates consented?
- If the disclosure is for services, proceedings, crime prevention, or a regulatory purpose, does it genuinely fall within that category?
- Are there any additional legal restrictions, such as data protection or human rights limits, that still apply even if TCMA allows disclosure?
The guidance also says the WRA will use, share or disclose PTI where legally required or permitted, and where it considers this proportionate and in the public interest. That is part of the WRA’s stated approach in the guidance. It should not be treated as replacing the statutory tests, but it helps explain how the WRA says it will exercise its powers.
Example
A buyer files a Land Transaction Tax return and includes personal and financial details. The WRA later uses an external contractor to support a function connected with processing or managing that tax information. On the guidance, disclosure to that contractor may be permitted if the contractor is exercising functions on behalf of the WRA or providing services connected with a WRA function.
By contrast, if a relevant official wanted to disclose the same information informally to someone with no legal role in the matter, the starting point would be that this is prohibited. If done unlawfully, it could amount to a criminal offence.
Why this can be difficult in practice
The difficult part is often not the basic principle but the edges of it.
First, whether information could “lead to” a person being identified may require judgment. Information does not need to name a person expressly if, in context, identification is still possible.
Secondly, the guidance lists permitted disclosures in broad categories. In real cases, there may be questions about whether a disclosure truly fits the category being relied on, especially where several organisations are involved.
Thirdly, the guidance refers to other legal regimes, including data protection and human rights law. So a disclosure may need to satisfy more than one legal framework at the same time.
Finally, the source material is guidance reflecting Part 2 of TCMA. It is helpful for understanding the WRA’s position, but the legislation remains the primary legal source if there is any doubt about the exact scope of a duty, power or offence.
Key takeaways
- The default rule is confidentiality: protected taxpayer information must not be disclosed unless the law permits it.
- The duty applies not only to WRA staff but also to others working for or on behalf of the WRA.
- Even where TCMA permits use or disclosure, other legal restrictions such as data protection and human rights law may still matter.
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