Commentary on Sections (and Schedules) Part 2: Finance
28.The Assembly Act provisions(1) in GOWA 2006 specify the legislative competence of the Assembly and give the Assembly the power to make laws, known as Acts of the Assembly. Tax policy (other than for local taxes such as council tax) is currently outside the Assembly’s legislative competence.
29.Part 2 of the Act enables the Assembly to legislate about devolved taxation. The devolved taxes specified in the new Part 4A of GOWA 2006 are a Welsh tax on transactions involving interests in land (replacing stamp duty land tax in Wales) and a Welsh tax on disposals to landfill (replacing landfill tax in Wales). New devolved taxes may be added by Her Majesty making an Order in Council.
30.Subject to a vote in favour in a referendum, the Assembly may also set Welsh rates for the purpose of calculating the rates of income tax to be paid by Welsh taxpayers.
31.A similar set of powers was devolved to Scotland under the Scotland Act 2012 (which amended the Scotland Act 1998). Scotland’s replacement taxes for stamp duty land tax and landfill tax are expected to be introduced in April 2015, and the Scottish rate of income tax is anticipated to commence in April 2016.