Welsh Tax Acts etc. (Power to Modify) Act 2022

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

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The Welsh Tax Acts etc. (Power to Modify) Act 2022 (external website) became law in Wales (external website) on 8 September 2022.

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.

¬¬¬Date of Royal Assent (8 September 2022)

Royal Assent (PDF, 159KB) was given on 8 September 2022.

Statement of policy with respect to the exercise of the power to make retrospective legislation within the Welsh Tax Acts etc. (Power to Modify) Act 2022

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¬¬¬Post Stage 4 (13 July 2022)

The Secretary of State for Wales (PDF, 60KB) and the Counsel General (PDF, 162KB) wrote to the Llywydd to advise that they would not be referring the Welsh Tax Acts etc. (Power to Modify) Bill to the Supreme Court under Sections 114, 111B or 112 of the Government of Wales Act 2006.

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¬¬¬Stage 4 (12 July 2022)

Stage 4 proceedings took place in Plenary on 12 July 2022.

Welsh Tax Acts etc. (Power to Modify) Bill, as passed (PDF, 108KB)

Presiding Officer’s Statement - Section 111A(3) of the Government of Wales Act 2006 – Welsh Tax Acts etc. (Power to Modify) Bill – 8 July 2022 (PDF, 155KB)

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¬¬¬Stage 3 (10 June 2022 – 5 July 2022)

Stage 3 began on 10 June 2022. Stage 3 consideration and disposal of amendments to the Bill (as amended at Stage 2) took place in Plenary on 5 July 2022.

The Bill was considered in the following order: Sections 1 – 10; Long title.

Groupings of Amendments – 30 June 2022 (PDF, 89KB)

Marshalled List of Amendments – 30 June 2022 (PDF, 109KB)

Notice of Amendments – 27 June 2022 (PDF, 101KB)

Notice of Amendments – 24 June 2022 (PDF, 83KB)

Notice of Amendments – 21 June 2022 (PDF, 82KB)

Welsh Government: Purpose and Effect table (PDF, 106KB)

Welsh Tax Acts etc. (Power to Modify) Bill, as amended at Stage 3 (PDF, 115KB)

Letter from the Minister for Finance and Local Government – 12 July 2022 (PDF, 150KB)

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¬¬¬Stage 2, Committee consideration of amendments (27 April 2022 – 9 June 2022)

Stage 2 began on 27 April 2022.

Details of tabled amendments were published here.

The Committee disposed of the amendments in the following order: Sections 1-8; Long title.

Marshalled List of Amendments – 1 June 2022 (PDF 169KB)

Groupings of Amendments – 1 June 2022 (PDF 93KB)

Notice of Amendments – 31 May 2022 (PDF, 95KB)

Notice of Amendments – 30 May 2022 (PDF 115KB)

Notice of Amendments - 26 May 2022 (PDF 103KB)

Welsh Government: Purpose and Effect table – 27 Mai 2022 (PDF 327KB)

Notice of Amendments – 27 April 2022 (PDF 88KB)

Welsh Government: Purpose and Effect table – 28 April 2022 (PDF 301KB)

Stage 2 consideration took place in committee on 9 June 2022.

Welsh Tax Acts etc. (Power to Modify) Bill, as amended at Stage 2 (PDF, 110KB)

Printing changes to the Bill as amended at Stage 2 (PDF, 83KB)

Explanatory Memorandum, revised after Stage 2 (PDF, 684KB)

Draft statement on retrospection, revised after Stage 2 (PDF, 216KB)

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¬¬¬ Financial Resolution

In accordance with Standing Order 26.68 the Presiding Officer indicated that a financial resolution was required for this Bill. Further information about financial resolutions is available in section 3 of the Guide to the scrutiny stages for Public Bills.

A Financial Resolution was agreed in Plenary on 26 April 2022.

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¬¬¬Stage 1, (13 December 2021 – 26 April 2022)

A debate took place in Plenary on 26 April 2022. The motion to agree the general principles of the Bill was agreed.

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

Written Consultation responses

Bill Summary (PDF 423KB)

Committee dates

The Finance Committee considered 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	Transcript	View meeting
11 February 2022	Oral evidence sessions	Transcript	View meeting
16 February 2022	Minister for Finance and Local Government	Transcript	View meeting
2 March 2022	Private discussion of report contents	(private)	(private)
11 March 2022	Private discussion of report contents	(private)	(private)
25 March 2022	Consideration of draft report	(private)	(private)

The Finance Committee laid its report (PDF, 1.4MB) on 8 April 2022. The Committee received a response (PDF, 202KB) from the Welsh Government on 11 May 2022.

Documentation

Response from the Minister for Finance and Local Government to the Chair of the Finance Committee in advance of the General Principles Debate – 22 April 2022 (PDF 547KB)

Letter from the Minister for Finance and Local Government to the Chair of the Finance Committee regarding the request for further information – 24 January 2022 (PDF 276KB)

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 96KB)

The Legislation, Justice and Constitution Committee considered the Bill on the following date:

Date and Agenda	Purpose of meeting	Transcript	Senedd.TV
14 February 2022	Minister for Finance and Local Government	Transcript	View meeting

The Legislation, Justice and Constitution Committee laid its report (PDF, 1.3MB) on the Bill on 8 April 2022. The Committee received a response (PDF, 223KB) from the Welsh Government on 11 May 2022.

Documentation

Response from the Minister for Finance and Local Government to the Chair of the Legislation, Justice and Constitution Committee in advance of the General Principles Debate – 22 April 2022 (PDF 428KB)

Letter from the Minister for Finance and Local Government to the Chair of the Legislation, Justice and Constitution Committee: Welsh Tax Acts etc. (Power to Modify) Bill - 11 March 2022 (PDF 648KB)

Letter from the Chair of the Legislation, Justice and Constitution Committee to the Minister for Finance and Local Government: Welsh Tax Acts etc. (Power to Modify) Bill - 24 February 2022 (PDF 183KB)

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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