The Welsh Senedd has published 'Consultation: Welsh Tax Acts etc. (Power to Modify) Bill' which seeks views on the proposed Bill, the principles behind having the power to modify Welsh Tax Acts and protect Welsh tax revenues, as well as the effectiveness of the proposed mechanisms.

The Bill, which has been introduced by the Welsh Government, gives Ministers the power to modify Welsh Tax Acts in order to:

  • Ensure Welsh Taxes are not imposed where they would be incompatible with international obligations.
  • Protect against tax avoidance.
  • Respond to changes made by the UK Government to predecessor UK taxes (e.g. Stamp Duty Land Tax) which could affect the amounts paid to the Welsh Consolidated Fund.
  • Respond to court/tribunal decisions that may affect the operation of Welsh Tax legisation. 

The Bill has been referred to the Welsh Senedd's Finance Committee, which has opened the consultation. Views are sought on:

  • The general principles of the Bill.
  • The appropriateness of the powers to make subordinate legislation.
  • Barriers to implementation.
  • Unintended consequences.
  • The appropriateness of Section 3 (regulations that have retrospective effect) and the draft policy statement.
  • The financial implications.
  • Whether such an approach has been adopted in other countries, and its effectiveness.
  • Strengths and weaknesses of alternative approaches.

Responses are requested by 28 January 2022. Any documents submitted that are intended for publication or use as evidence are requested to be submitted in both English and Welsh.

The contact details for the consultation are: 

Finance Committee
Welsh Parliament
Cardiff Bay
CF99 1SN

Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Useful guides on this topic

Who is a Welsh Taxpayer?
Who is a Welsh taxpayer? What if I move across the border during the tax year? What about non-UK residents who work in the UK or Wales?

Welsh Tax rates & allowances
A landing page with links to guides on the devolved Welsh Taxes.

Welsh Budget 2022-23: Summary
Welsh Government Finance Minister Rebecca Evans announced the draft Welsh Budget for 2022-23 on 21 December 2021.

External link

Consultation: Welsh Tax Acts etc. (Power to Modify) Bill