Wales Bill (HL Bill 46)

Welsh tax on land transactions

15 Welsh tax on transactions involving interests in land

(1) In Part 4A of GOWA 2006 (as inserted by section 6), after Chapter 2 (inserted
by section 8) insert—

“CHAPTER 3 5Tax on transactions involving interests in land

116L Tax on transactions involving interests in land

(1) A tax which is charged on a Welsh land transaction and complies with
the requirements of this section is a devolved tax.

(2) In this Chapter a “Welsh land transaction” means an acquisition of—

(a) 10an estate, interest, right or power in or over land in Wales;

(b) the benefit of an obligation, restriction or condition affecting the
value of any such estate, interest, right or power.

(3) The tax may be chargeable—

(a) whether or not there is any instrument effecting the transaction,

(b) 15if there is such an instrument, regardless of where it is executed,
and

(c) regardless of where any party to the transaction is or is resident.

(4) The tax may not be imposed on so much of a Welsh land transaction as
relates to land below mean low water mark.

(5) 20The following persons are not to be liable to pay the tax—

(none) Government

A Minister of the Crown

The Welsh Ministers, the First Minister and the Counsel
General

25The Scottish Ministers

A Northern Ireland department

(none) Parliament etc

The Corporate Officer of the House of Lords

The Corporate Officer of the House of Commons

30The Assembly Commission

The Scottish Parliamentary Corporate Body

The Northern Ireland Assembly Commission.”

(2) A devolved tax specified in section 116L of GOWA 2006 (as inserted by this
section) may not be charged under an Act of the Assembly on a land
35transaction within the meaning of Part 4 of the Finance Act 2003 unless section
16 (disapplication of UK stamp duty land tax) has effect in relation to that
transaction.

16 Disapplication of UK stamp duty land tax

(1) Part 4 of the Finance Act 2003 (stamp duty land tax) is amended as follows.

(2) In section 48 (chargeable interests), in subsection (1)(a), omit “and Wales”.

(3) Schedule 2 to this Act contains further amendments relating to the
disapplication of stamp duty land tax in relation to Wales.

(4) The amendments made by this section and Schedule 2 have effect in relation to
5land transactions with an effective date on or after such date as is appointed by
the Treasury by order under this subsection.

(5) But those amendments do not have effect in relation to any transaction—

(a) effected in pursuance of a contract entered into and substantially
performed on or before the date on which this Act is passed, or

(b) 10effected in pursuance of a contract entered into on or before that date
and not excluded by subsection (6).

(6) A transaction effected in pursuance of a contract entered into on or before the
date on which this Act is passed is excluded if—

(a) there is any variation of the contract, or assignment of rights under the
15contract, after that date,

(b) the transaction is effected in consequence of the exercise after that date
of any option, right of pre-emption or similar right, or

(c) after that date there is an assignment, subsale or other transaction
relating to the whole or part of the subject-matter of the contract as a
20result of which a person other than the purchaser under the contract
becomes entitled to call for a conveyance.

(7) Expressions used in any of subsections (4) to (6) and in Part 4 of the Finance Act
2003 have the same meaning in those subsections as in that Part.

17 Information on Welsh land transactions

(1) 25In Part 4A of GOWA 2006 (as inserted by section 6), in Chapter 3 (inserted by
section 15), after section 116L insert—

“116M Duty to disclose information on Welsh land transactions to HMRC

(1) A person who is a member of the Welsh Government must provide to
HMRC such of the information falling within subsection (2) as HMRC
30may require.

(2) Information falls within this subsection if it—

(a) is relevant information in relation to a Welsh land transaction,
and

(b) is in the possession or under the control of the person.

(3) 35“Relevant information”, in relation to a Welsh land transaction, means
information which—

(a) corresponds to any of the particulars which would be required
under Schedule 2 to the Finance Act 1931, but for section
28(3)(c) of that Act, or

(b) 40uniquely identifies, or assists in uniquely identifying, any
person who gives consideration for, or is a party to, the
transaction.

(4) Information is to be provided under subsection (1) in such form as
HMRC may reasonably specify.

(5) Information acquired by HMRC under this section is to be treated, for
the purposes of the Commissioners for Revenue and Customs Act 2005,
as acquired in connection with a function of theirs.

(6) In this section, “HMRC” means Her Majesty’s Revenue and Customs.”

(2) 5This section has effect in relation to land transactions in relation to which
section 16 has effect.

Welsh tax on disposals to landfill

18 Welsh tax on disposals to landfill

(1) In Part 4A of GOWA 2006 (as inserted by section 6), after Chapter 3 (inserted
10by section 15) insert—

“CHAPTER 4 Tax on disposals to landfill

116N Tax on disposals to landfill

(1) A tax charged on disposals to landfill made in Wales is a devolved tax.

(2) A disposal is a disposal to landfill if—

(a) 15it is a disposal of material as waste, and

(b) it is made by way of landfill.”

(2) A devolved tax specified in section 116N of GOWA 2006 (as inserted by this
section) may not be charged under an Act of the Assembly on a disposal if the
disposal is made before the date appointed under section 19(3) (disapplication
20of UK landfill tax).

19 Disapplication of UK landfill tax

(1) Part 3 of the Finance Act 1996 (landfill tax) is amended as follows.

(2) In section 40(1) (charge on taxable disposal), omit “and Wales”.

(3) This section has effect in relation to disposals made on or after such date as is
25appointed by the Treasury by order under this subsection.

Borrowing

20 Borrowing by the Welsh Ministers

(1) GOWA 2006 is amended as follows.

(2) Section 121 (borrowing by Welsh Ministers) is amended in accordance with
30subsections (3) to (5).

(3) For subsection (1) substitute—

“(1) The Welsh Ministers may borrow from the Secretary of State—

(a) any amounts it appears to them are required by them for the
purpose of meeting a temporary excess of sums paid out of the
Welsh Consolidated Fund over sums paid into that Fund,

(b) any amounts it appears to them are required by them for the
5purpose of providing a working balance in the Welsh
Consolidated Fund, and

(c) any amounts which in accordance with rules determined by the
Treasury are required by the Welsh Ministers to meet current
expenditure because of a shortfall in receipts from devolved
10taxes, or from income tax charged by virtue of a Welsh rate
resolution, against forecast receipts.

(1A) The Welsh Ministers may, with the approval of the Treasury, borrow
by way of loan any amounts it appears to them are required by them
for the purpose of meeting capital expenditure.

(1B) 15An amount is required for the purpose of meeting capital expenditure
if the expenditure would be capital expenditure for the purposes of
accounts under section 131.”

(4) In subsection (2), after “section” insert “from the Secretary of State”.

(5) After subsection (3) insert—

“(4) 20The Secretary of State may by order made with the consent of the
Treasury amend subsection (1A) so as to vary the means by which the
Welsh Ministers may borrow money.

(5) No order is to be made under subsection (4) unless a draft of the
statutory instrument containing it has been laid before, and approved
25by a resolution of, the House of Commons.”

(6) Section 122 (lending by Secretary of State) is amended in accordance with
subsections (7) to (9).

(7) In subsection (2), for “that section” substitute “section 121(1)”.

(8) In subsection (3), omit “greater”.

(9) 30After subsection (3) insert—

“(3A) An amount substituted under subsection (3) may be more or less than
the amount for which it is substituted but may not be less than £500
million.”

(10) After section 122 insert—

“122A 35 Lending for capital expenditure

(1) The aggregate at any time outstanding in respect of the principal of
amounts borrowed under section 121(1A) shall not exceed £500 million.

(2) The Secretary of State may by order made with the consent of the
Treasury substitute for the amount for the time being specified in
40subsection (1) such amount as may be specified in the order.

(3) An amount substituted under subsection (2) may be more or less than
the amount for which it is substituted but may not be less than £500
million.

(4) No order is to be made under subsection (2) unless a draft of the
statutory instrument containing it has been laid before, and approved
by a resolution of, the House of Commons.

(5) A person lending money to a member of the Welsh Government—

(a) 5is not bound to enquire whether the member of the Welsh
Government has power to borrow the money, and

(b) is not to be prejudiced by the absence of any such power.

(6) The Welsh Ministers may not mortgage or charge any of their property
as security for money which they have borrowed under section
10121(1A).

This is subject to section 121(3) (charging of sums on the Welsh
Consolidated Fund).

This is subject to section 121(3) (charging of sums on the Welsh
Consolidated Fund).

(7) 15Security given in breach of subsection (6) is unenforceable.”

21 Repeal of existing borrowing power

(1) In Schedule 3 to the Welsh Development Agency Act 1975 (borrowing and
guarantees), the following are repealed—

(a) paragraph 3 (power for Welsh Ministers to borrow money);

(b) 20paragraph 6 (power for Treasury to guarantee money borrowed under
paragraph 3).

(2) The repeals made by subsection (1) do not affect—

(a) the liability of the Welsh Ministers to repay any money borrowed
under paragraph 3 of that Schedule before the date when that
25subsection comes into force, or

(b) any guarantee given under paragraph 6 of that Schedule before that
date.

(3) Subsection (4) applies to the aggregate amount (if any) which, immediately
before subsection (1) comes into force, is outstanding in respect of the principal
30of sums borrowed on or after the day on which this Act is passed under
paragraph 3 of that Schedule for the purpose of meeting capital expenditure.

(4) For the purpose of section 122A(1) of GOWA 2006 (limit on capital borrowing),
that amount is treated as outstanding in respect of the principal of sums
borrowed under section 121(1A) of that Act.

(5) 35An amount is borrowed for the purpose of meeting capital expenditure if the
expenditure would be capital expenditure for the purposes of accounts under
section 131 of GOWA 2006.

Budgetary procedures

22 Budgetary procedures

(1) 40Schedule 7 to GOWA 2006 (legislative competence to make Acts of the
Assembly) is amended as follows.

(2) In Part 1, in paragraph 13 (National Assembly for Wales), at the end insert

“Budgetary procedures.

“Budgetary procedures” are procedures for a financial year relating
to—

(a) the authorisation of the amount of resources which may be
5used or retained in that year by relevant persons or pursuant
to a relevant enactment,

(b) the authorisation of the amount which may be paid out of the
Welsh Consolidated Fund in that year to relevant persons or
for use pursuant to a relevant enactment, or

(c) 10the scrutiny of the use of the amounts so authorised under
paragraph (a) or (b) or of the exercise of borrowing powers by
the Welsh Ministers.

The following are “relevant persons”—

(a) the Welsh Ministers,

(b) 15the First Minister,

(c) the Counsel General,

(d) the Assembly Commission,

(e) the Wales Audit Office, and

(f) the Public Service Ombudsman for Wales.

20A “relevant enactment” is an enactment which provides for payment
out of the Welsh Consolidated Fund.

The reference to the use of resources is a reference to their
expenditure, consumption or reduction in value.”

(3) In Part 2, in paragraph 5 (provisions of GOWA 2006 which may not be
25modified)—

(a) in sub-paragraph (2), in paragraph (a), after “78,” insert “120(2), 125 to
128,”;

(b) in sub-paragraph (2), after paragraph (a) insert—

“(aa) section 119 in so far as it relates to estimated payments
30for a financial year into the Welsh Consolidated Fund or
to the Welsh Ministers, the First Minister or the Counsel
General;”;

(c) after sub-paragraph (4), insert—

“(4A) Sub-paragraph (1), so far as it applies in relation to a
35provision of Part 5 or section 159, does not apply to a
provision of an Act of the Assembly if—

(a) the provision is incidental to, or consequential on, a
provision of an Act of the Assembly relating to
budgetary procedures or devolved taxes, and

(b) 40the Secretary of State consents to the provision.

(4B) In sub-paragraph (4A), “budgetary procedures” has the same
meaning as in paragraph 13 of Part 1 of this Schedule.”

Reports

23 Reports on the implementation and operation of this Part

(1) The Secretary of State must—

(a) make reports on the implementation and operation of this Part (see
5subsection (7)),

(b) lay a copy of each report before each House of Parliament, and

(c) send a copy of each report to the Welsh Ministers, who must lay a copy
of it before the Assembly.

(2) The Welsh Ministers must—

(a) 10make reports on the implementation and operation of this Part (see
subsection (7)),

(b) lay a copy of each report before the Assembly, and

(c) send a copy of each report to the Secretary of State, who must lay a copy
of it before each House of Parliament.

(3) 15A report must be made under each of subsections (1) and (2)—

(a) before the first anniversary of the day on which this Act is passed, and

(b) thereafter, before each subsequent anniversary of that day until the
final reports are made under subsection (4).

(4) Final reports must be made on, or as soon as practicable after, the first
20anniversary of the day on which the last of the provisions of this Part is
implemented (as determined under subsections (5) and (6)).

(5) A provision of this Part is implemented—

(a) if it is expressed as applying in relation to events occurring on or after
a particular day, on that day;

(b) 25if it is expressed as applying in relation to a tax year or financial year,
on the last day of that year;

(c) in any other case, on the day on which it comes into force.

(6) If, in the case of any provision, the application of subsection (5) gives more than
one day, the provision is implemented on the last of them.

(7) 30A report on the implementation and operation of this Part must include—

(a) a statement of the steps that have been taken, whether by the maker of
the report or by others, since the making of the previous report (or, in
the case of the first report, since the passing of this Act) towards
implementation of the provisions of this Part,

(b) 35a statement of the steps that the maker of the report proposes should be
taken, whether by the maker of the report or by others, towards the
implementation of the provisions of this Part,

(c) an assessment of the operation of the provisions of this Part that have
been implemented,

(d) 40an assessment of the operation of any other powers to devolve taxes to
the Assembly or to change the powers of the Welsh Ministers to borrow
money, and of any other changes affecting the provisions inserted or
amended by this Part,

(e) a statement of the effect of this Part on the amount of any payments
45made by the Secretary of State under section 118 of GOWA 2006
(payments into the Welsh Consolidated Fund), and

(f) any other matters concerning the sources of revenue for the Welsh
Government that the maker of the report considers should be brought
to the attention of Parliament or the Assembly.

(8) Until the majority of the voters in a referendum held by virtue of section 12(1)
5vote in favour of sections 8 and 9 (income tax provisions) coming into force, the
statements required by subsection (7)(a) and (b) do not include steps taken, or
proposed to be taken, towards the implementation of those provisions.

(9) In this section, references to “this Part” do not include—

(a) section 10 (Welsh taxpayers for social security or child support
10purposes),

(b) section 11 (amendments to the definition of a Scottish taxpayer), or

(c) section 22 (budgetary procedures).

Part 3 Miscellaneous

24 15Local housing authorities: limits on housing revenue account debt

(1) Part 6 of the Local Government and Housing Act 1989 (housing finance) is
amended as follows.

(2) After section 76 insert—

“76A Limits on indebtedness

(1) 20The Treasury may from time to time make a determination providing
for the maximum amount of housing debt that may be held, in
aggregate, by local housing authorities in Wales that keep a Housing
Revenue Account.

(2) The Welsh Ministers may from time to time make a determination
25providing for the calculation in relation to each such authority of—

(a) the amount of housing debt that, at such time and on such
assumptions as the Welsh Ministers may determine, is to be
treated as held by the authority, and

(b) the maximum amount of such housing debt that the authority
30may hold.

(3) The Welsh Ministers must make a determination under subsection (2)
in relation to each authority within the period of 6 months beginning
immediately after the day on which the Treasury makes a
determination under subsection (1).

(4) 35The aggregate of the amounts determined under subsection (2)(b) must
not exceed the amount determined under subsection (1).

(5) A local housing authority may not hold debt in contravention of a
determination under subsection (2)(b).

(6) A determination under this section may, in particular, provide for all or
40part of an amount to be calculated in accordance with a formula or
formulae.

(7) A determination under this section may provide for assumptions to be
made in making a calculation whether or not those assumptions are, or
are likely to be, borne out by events.

(8) As soon as practicable after making a determination under subsection
5(1), the Treasury must—

(a) send a copy of it to the Welsh Ministers, and

(b) lay a copy of it before the House of Commons.

(9) For the purposes of this section a debt is a “housing debt”, in relation to
a local housing authority, if—

(a) 10the debt is held by the authority in connection with the exercise
of its functions relating to houses and other property within its
Housing Revenue Account, and

(b) interest and other charges in respect of the debt are required to
be carried to the debit of that account.

76B 15Power to obtain information

(1) A local housing authority in Wales, and any officer or employee of a
local housing authority in Wales concerned with their housing
functions, must supply the Welsh Ministers with such information as
the Welsh Ministers may specify, either generally or in any particular
20case, for the purpose of enabling the Welsh Ministers to exercise their
functions under section 76A.

(2) A local housing authority must supply the Welsh Ministers with such
certificates supporting the information required by them as they may
specify.

(3) 25If a local housing authority, or any officer or employee of a local
housing authority concerned with their housing functions, fails to
comply with subsection (1) or (2) before the end of such period as the
Welsh Ministers may specify, the Welsh Ministers may exercise their
functions under section 76A on the basis of such assumptions and
30estimates as they see fit.”

(3) Section 87 (determinations and directions) is amended as follows.

(4) For “the Secretary of State” (in each place) substitute “the appropriate person”.

(5) After subsection (1) insert—

“(1A) Subsection (1)(b) does not apply to determinations under section
3576A(2).”

(6) In subsection (2)—

(a) for “him” substitute “that person”;

(b) for “he” substitute “the appropriate person”.

25 The work of the Law Commission so far as relating to Wales

(1) 40The Law Commissions Act 1965 is amended as follows.

(2) In section 3(1) (functions of the Commissions), after paragraph (e) insert—

“(ea) in the case of the Law Commission, to provide advice and
information to the Welsh Ministers;”.

(3) In section 3A (reports on implementation of Law Commission proposals), after
subsection (6) insert—

“(7) This section does not require the Lord Chancellor to prepare reports on
Law Commission proposals on which the Welsh Ministers are required
5to report (see section 3C).”

(4) After section 3B insert—

“3C Report on implementation of Law Commission proposals: Wales

(1) The Welsh Ministers must prepare a report each year on—

(a) the Law Commission proposals relating to Welsh devolved
10matters that have been implemented since the preparation of
the previous report under this section;

(b) the Law Commission proposals relating to Welsh devolved
matters that have not been implemented as at the preparation of
the report.

(2) 15The report required under subsection (1)(b) must include—

(a) plans for dealing with any of the proposals described in that
paragraph;

(b) any decision not to implement any of those proposals taken
since the preparation of the previous report under this section;

(c) 20the reasons for any such decision.

(3) The Welsh Ministers must lay the report before the National Assembly
for Wales.

(4) The Welsh Ministers must prepare a report under this section—

(a) before the first anniversary of the day on which this section
25comes into force, and

(b) thereafter, before each subsequent anniversary of that day.

(5) In the case of the first report, the references in subsections (1) and (2) to
the period since the preparation of the previous report are to be read as
references to the period since the coming into force of this section.

(6) 30If a decision not to implement a Law Commission proposal is dealt with
in a report under this section, subsection (1)(b) does not require a later
report to deal with the proposal so far as it is covered by that decision.

(7) If a decision not to implement a Law Commission proposal has been
taken before the coming into force of this section, subsection (1)(b) does
35not require any report to deal with the proposal so far as it is covered
by that decision.

(8) In this section—

(a) “Law Commission proposal” means any proposal or
recommendation for the reform of the law that has been
40published in a report by the Law Commission, and

(b) references to the implementation of a Law Commission
proposal are to its implementation in whole or in part.

(9) Whether a Law Commission proposal relates to Welsh devolved
matters is to be determined in accordance with section 3D(8).