Part 1: Constitutional Arrangements Chapter 3: Legislative competence Schedule 1: New Schedule 7A to the Government of Wales Act 2006
New Schedule 7A sets out the reserved matters for the purposes of section 108A(2)(c), as inserted by section 3(1) of the Act. Section 3(2) provides that this Schedule, together with new Schedule 7B, replaces Schedule 7 to GoWA.
	The following terms are used in Schedule 7A to describe the subject matters that are reserved to the UK Parliament and those which are devolved to the Assembly:
Reservation: A reservation is a description of a subject matter, about which only the UK Parliament can pass primary legislation (and any secondary legislation enabled by provision in an Act) in relation to Wales. Any subject not reserved, is devolved to the Assembly (but, see 'carve out' below). The reservations may, because of the fairly broad terms in which they are described, include some matters that are intended to be devolved. Such matters are therefore listed as an exception.
Exception: An exception to a reservation describes a subject which would otherwise form part of the reservation but is excepted, so that it is within the Assembly’s legislative competence. Exceptions are specific to the individual reservations under which they are listed; they are not of general application (see paragraph 14 of Part 2 of Schedule 7A).
Carve Out: A carve out is a specific matter which would otherwise form part of the exception, if it were not effectively ‘re-reserved’ to the UK Parliament by being carved out of the exception.
	For the purposes of Schedule 7A, the reservations, less the exceptions, plus the carve outs equals the totality of the matters reserved to the UK Parliament. Similarly, the exceptions (having regard to the carve outs) plus the subjects not mentioned anywhere in Schedule 7A equals the totality of the subject matters devolved to the Assembly. However, even where an Assembly Act provision does not relate to a reserved matter, this is only one part of the legislative competence test (section 108A(2)(c)) and an Assembly Act provision must of course also satisfy the tests in paragraphs (a), (b), (d) and (e) in section 108A(2).
	As an example of the three categories of subject see Section E2 of Schedule 7A:
Reservation: "Railway services" (reserved).
Exception: "Financial assistance so far as relating to railway services" (devolved).
Carve out: "but this exception does not apply in relation to financial assistance relating to the carriage of goods" (reserved).
	Part 1 of Schedule 7A lists the general reservations, whereas Part 2 lists the specific reservations. Part 3 contains provisions about Schedule 7A as a whole.