Therefore, we move on to group 4, which relates to major interests in higher rate residential property transactions. The lead amendment in this group is amendment 7. I call on the Cabinet Secretary to move and speak to the lead amendment and the other amendments in the group. Mark Drakeford.

Amendment 7 (Mark Drakeford) moved.

Diolch yn fawr, Llywydd. When I brought forward a set of amendments at Stage 2 to provide for higher rates on residential property transactions, I explained that I intended to mirror broadly existing stamp duty land tax provisions in order to provide continuity and certainty. I also said, however, that I intended to add clarity and make improvements to the legislation where there were opportunities to do so. I’m keen to address, through this group, a number of such issues where I consider minor revisions will be beneficial. I was grateful for the support of members of the Finance Committee when amendments to secure higher rates for residential property transactions were put forward during Stage 2 proceedings. This will ensure that the significant funding raised by the introduction of this surcharge will continue to be available for the provision of public services in Wales.

This group of amendments, Llywydd, is the most technically complex group of amendments brought forward by the Government. That’s why I issued a technical letter on 23 March to Assembly Members. My hope was that Members would have sufficient opportunity to consider these matters in relation to these amendments in this group ahead of today’s discussion.

By way of summary, Schedule 5 of the Bill provides that a transaction will be treated as a higher-rates transaction where the main subject matter of the transaction consists of a major interest in a dwelling. It is possible, in law, to separate legal and beneficial interest in a residential property transaction.

The vast majority of transactions are likely to involve the transfer of both a legal and beneficial interest. However, during the passage of this Bill, I’ve been alerted by some of our expert group to a potential ambiguity in the existing SDLT legislation, which could lead some people to claim that by structuring the acquisition of their additional residential property in a particular way, it would be possible to argue that the higher rates do not apply. While I do not accept this argument, the amendments in this group are about putting this beyond doubt, and as a result, protecting our tax base.

So, in more detail, then, Llywydd, amendments 7 and 8 amend paragraphs 5 and 15 of Schedule 5 to deal with how a taxpayer’s beneficial interest in a dwelling is to be determined. Where a property is purchased in joint names, the buyers will hold the beneficial interest in the property as either joint tenants or tenants in common. Joint tenants are entitled to an equal share of the property, whereas tenants in common are able to hold the property in either equal or unequal shares, which are known as undivided shares.

Amendments 7 and 8 ensure that the market value of the taxpayer’s interest is assessed as being a proportion of the total market value of the dwelling that represents their beneficial share. This ensures fairness to the taxpayer, because it means the tax is only payable on the share of any property than a person holds rather than the whole market value of that property. This clarification is especially important as the higher rates will not apply if the market value of the interest held is less than £40,000.

Amendment 12 provides for the introduction of a new paragraph 29 into Schedule 5, dealing with the scope of major interest. It does not change the policy intent of the provisions as scrutinised, but adds greater clarity to them. I ask Members to support the amendments in this group.

Nick Ramsay. No? There are no other speakers. Therefore, I doubt whether the Cabinet Secretary has any closing remarks for this debate. The question is that amendment 7 be agreed. Does any Member object? Amendment 7 is, therefore, agreed.

Amendment 7 agreed in accordance with Standing Order 12. 36.

Cabinet Secretary—amendment 8.

Amendment 8 (Mark Drakeford) moved.

Formally.

The question is that amendment 8 be agreed. Does any Member object? The amendment is agreed.

Amendment 8 agreed in accordance with Standing Order 12. 36.