Welsh Tax Acts etc. (Power to Modify) Bill

A Welsh Government Bill, introduced by Rebecca Evans MS, Minister for Finance and Local Government. The Business Committee has remitted the Bill to the Finance Committee.

 

About the Bill

 

The Bill provides Welsh Ministers with a regulation making power to enable them to modify Welsh Tax Acts (and subordinate legislation made under them) for one or more of the following purposes:

  • to ensure the devolved Welsh taxes (Landfill Disposals Tax and Land Transaction Tax) are not imposed where to do so would be incompatible with international obligations;
  • to protect against tax avoidance in relation to devolved Welsh taxes;
  • to respond to changes made by the UK Government to predecessor UK taxes (Stamp Duty Land Tax or Landfill Tax) which affect, or may affect, the amount paid into the Welsh Consolidated Fund; and
  • to respond to decisions of the courts/tribunals which affect, or may affect, the operation of the Welsh Tax Acts, or any regulations made under them.

‘Welsh Tax Acts’ refers to the Tax Collection and Management (Wales) Act 2016, the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 and the Landfill Disposals Tax (Wales) Act 2017.

 

The Bill enables Welsh Ministers to make changes to the devolved Welsh taxes, including imposing changes to the amounts payable by taxpayers. Welsh Ministers may also make provision having retrospective effect. However a new penalty or a change to an existing penalty may not be imposed retrospectively. The Bill also places a duty on Welsh Ministers to publish a policy statement on the use of the power to make regulations with retrospective effect.

 

The Bill permits Welsh Ministers to make regulations that:

  • only come into force once the Senedd has approved the making of them; or
  • come into force straight away but which require subsequent approval by the Senedd.

Further detail about the Bill can be found in its accompanying Explanatory Memorandum.

 

Current Stage

BillStage1

The Bill is currently at Stage 1. An explanation of the various stages of Assembly Bills is available in the Guide to the Stages of Public Bills and Acts.

 

Record of Passage in the Welsh Parliament

The following table sets out the dates for each stage of the Bill’s passage through the Welsh Parliament.

 

¬¬¬Stage 1 (Current)

The Finance Committee will consider its approach to Stage 1 consideration on 16 December 2021.

 

Committee dates

The Finance Committee will consider the Bill on the following dates:

 

Date and Agenda

Purpose of meeting

Transcript

Senedd.TV

16 December 2021

Consideration of Approach to Stage 1 Scrutiny (Private)

(private)

(private)

22 December 2021

Minister for Finance and Local Government

Transcript

View meeting

2 February 2022

Oral evidence sessions

 

 

11 February 2022

Oral evidence sessions

 

 

16 February 2022

Minister for Finance and Local Government

 

 

2 March 2022

Private discussion of report contents

(private)

(private)

 

Documentation

 

Letter from the Chair of the Finance Committee to the Minister for Finance and Local Government regarding the cost of implementing changes to LTT - 10 January 2022   PDF 96 KB

 

The Legislation, Justice and Constitution Committee will consider the Bill on the following dates:

Date and Agenda

Purpose of meeting

Transcript

Senedd.TV

14 February 2022

Minister for Finance and Local Government

 

 

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¬¬¬Bill introduced (13 December 2021)

Welsh Tax Acts etc. (Power to Modify) Bill, as introduced (PDF, 103KB)

 

Explanatory Memorandum (PDF, 1.2MB)

 

Presiding Officer’s Statement: 13 December 2021 (PDF, 92KB)

 

Statement of Policy Intent (PDF, 689KB)

 

Draft Statement on Retrospection (PDF, 329KB)

 

Statement by the Minister for Finance and Local Government – 14 December 2021

 

Business Committee - Timetable for consideration of the Welsh Tax Acts etc. (Power to Modify) Bill (PDF, 41KB)

 

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Contact information

Clerk: Georgina Owen

Email: SeneddFinance@senedd.wales

Business type: Bill

First published: 13/12/2021

Documents

Consultations