Draft Tax Collection and Management (Wales) Act 2016 and the Land Transaction Tax and Anti-Avoidance of Devolved Taxes (Wales) Act 2017 (Consequential Amendments) Order 2018

Jonathan Edwards Excerpts

Wednesday 14th November 2018 General Committees

[Nigel Adams]

It is unlike the hon. Gentleman to raise the European Union withdrawal agreement, but I commend him for his canny ability to weave such remarks into a debate on the Welsh Revenue Authority and its land transaction tax capabilities.

The order, made under powers in section 150 of the Government of Wales Act 2006, makes consequential provisions on the establishment of the Welsh Revenue Authority and the creation of a land transaction tax. It has four provisions. Article 2 inserts the new Welsh Revenue Authority into schedule 1 of the House of Commons Disqualification Act 1975, so as to disqualify the chairperson and non-executive members of the WRA from being Members of this House. That puts the WRA on the same footing as Her Majesty’s Revenue and Customs in that respect. Following the devolution of powers over Assembly elections in the Wales Act 2017, whether the chairperson and non-executive members should also be disqualified from being Members of the National Assembly for Wales is, of course, a matter for the Assembly.

Article 3 inserts the WRA into the list of public bodies in part 6 of schedule 1 to the Freedom of Information Act 2000, thereby providing a right of access to information held by the WRA. In doing so, the order brings the WRA within the definition of “Welsh public authority” under that Act.

Article 4 inserts a reference to the WRA into schedule 1 to the Public Interest Disclosure (Prescribed Persons) Order 2014, ensuring the same protection for whistleblowers who contact the WRA under the Employment Rights Act 1996 as that afforded to whistleblowers who assist HMRC.

Finally, article 5 inserts a reference to the land transaction tax into regulation 45 of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017. Under those regulations, HMRC is required to maintain a register of the beneficial owners of certain trusts. The amendment provides that those reporting requirements apply to trusts that are liable to pay land transaction tax in Wales.

The order demonstrates the Government’s continued commitment to work with the Welsh Government to deliver effective implementation of devolved taxes in Wales. In assuming tax and borrowing powers, devolution in Wales has truly come of age, as the devolved institutions become responsible not only for how money is spent in Wales, but for how it is raised.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

I welcome the Minister to his post. Before he concludes his remarks, can he reassure the Committee that the Welsh Government are happy with the legislation as drafted?

[Nigel Adams]

I have not had that conversation directly, but I understand that the Welsh Assembly has been very much involved in the drafting of the order, so I will make that assumption. The hon. Gentleman will appreciate that I have not had my feet under the table for very long.

Following the implementation of Welsh rates of income tax, the Assembly will be responsible for raising more than £2 billion in tax revenue, which is around 15% of the Welsh block grant. Those fiscal powers, together with the powers devolved through the Wales Act 2017 and the fiscal framework, pave the way for the Assembly to become a fully fledged Welsh Parliament. I commend the order to the Committee.