Can I call on the Cabinet Secretary for Finance to move the motions? Mark Drakeford.

Motion NDM6637 Julie James

To propose that the National Assembly for Wales, in accordance with Standing Order 27.5:

1.  Approves that the draft Land Transaction Tax (Transitional Provisions) (Wales) Regulations 2018 are made in accordance with the draft laid in the Table Office on 8 January 2018.

NDM6639 Julie James

To propose that the National Assembly for Wales, in accordance with Standing Order 27.5:

1.  Approves that the draft Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (Amendment to Schedule 5) Regulations 2018 were made in accordance with the draft laid in the Table Office on 8 January 2018.

Motions moved.

Thank you very much, Deputy Presiding Officer. Last Friday, I agreed with the Chief Secretary to the Treasury that enough preparatory work had been done to enable the UK Government to arrange that stamp duty land tax and landfill tax will no longer be operational in Wales at the end of next March. That will allow us to introduce the first Welsh devolved taxes for centuries. The Treasury will now lay the necessary Orders.

Therefore, the regulations before the Assembly this afternoon try to create the situation that Welsh taxpayers will face from this April onwards. I would like to put on record my thanks to the Finance Committee and the Constitutional and Legislative Affairs Committee for their work in considering the regulations. Under this item on the agenda, I will be introducing two sets of regulations for land transaction tax.

Both sets of regulations, Dirprwy Lywydd, are essentially technical in nature in this group. Firstly, the land transaction tax transitional provisions regulations, and these are made under section 78(1) of the Act, ensure that land transactions that take place on or after 1 April this year receive the required treatment during the transition from stamp duty land tax to land transaction tax. This will ensure transactions are not taxed twice under LTT and SDLT, or that they are not taxed at all. The regulations will ensure no taxpayer is unfairly disadvantaged or advantaged by the switch, and are likely to apply in only a small number of cases. Regulations 3 and 4 deal with the circumstances where a contract was entered into under SDLT, but not completed by April 2018. Regulations 5 and 6 provide that alternative financial arrangements available under SDLT can continue under land transaction tax. Regulations 7 and 8 deal with partnership arrangements under each regime. Regulations 9 to 11 provide transitional rules for leases. Regulation 12 introduces transitional rules in relation to second homes higher rates, to ensure that the same period to complete the purchase of a replacement main home will be available under LTT as is currently available under SDLT. This means, then, Dirprwy Lywydd, that in the transition from the current regime to the one that will apply after April of this year, there is fairness for taxpayers.

The second set of regulations in this group are made under section 24 of the Act and relate to higher rates residential property transactions. The regulations seek to ensure that the higher rate rules are applied consistently to married couples and civil partnerships. These rules currently exempt people from the higher rate when acquiring additional interest, such as a lease extension, in their current main residence. The regulations before the Assembly this afternoon extend the scope of this exception for acquisitions of interests in the same main residence. This means that where the acquisition is made by a spouse or civil partner who does not own an interest in the main residence—for example in the case of a re-mortgage—the higher rates do not apply. The change will ensure the higher rates rules are applied consistently, that is to say that married couples or civil partners are treated as owning what their spouse owns. Dirprwy Lywydd, both sets of regulations under this agenda item are essentially technical in nature, both are designed to ensure greater fairness in the operation of the system, and I hope that Members will support them today.

Thank you. Simon Thomas. No. Thank you. Jane Hutt.

Yes. Last week, I welcomed this historical step, which sees the first tax for 800 years on the statute book, ready for implementation from April 2018. I mentioned, last week, Kathryn Bishop, the chair of the Welsh Revenue Authority, which of course will be collecting our new taxes, and I just wanted to say I was very glad to meet with Kathryn Bishop today—I hope other Assembly Members managed to meet her—and also former Finance Committee Chair, Jocelyn Davies, and say how much I welcome the charter, the taxpayers' charter, which was launched by them today. The fact that the charter—. They are trying to approach this in a very different way from HMRC charters, working together to deliver a fair tax system for Wales. I think it's important to say that there is a consultation, which is closing on 13 February. So, obviously we want to help ensure that the public in our constituencies engage in that, because of course it will be important for them, as we welcome these new taxes from 1 April.

Finally, Deputy Presiding Officer, I do want to welcome—. I know the regs are technical in nature, but I want to welcome the decisions the finance Secretary has made on the rates and bands for land transaction tax, as under these, almost two thirds of all homebuyers will pay no tax under the main rates. Wales will also have the most generous starting threshold for this type of property tax in the UK from next April, so I welcome the opportunity to speak in support of these regulations.

Thank you. I call on the Cabinet Secretary for Finance to reply.

Can I thank Jane Hutt for those remarks, and Nick Ramsay for his earlier drawing attention to the presence of the Welsh Revenue Authority here? He was the champion of the charter during the passage of the Bill, and it's good to see copies of it in the Chamber this afternoon. Much of the work that we are talking about this afternoon had its origins in the Act, which Jane Hutt took through this Assembly during the last Assembly term, and I'm very glad to see that the regulations in front of the Assembly meet with her approval.

Thank you very much. The proposal is to agree the motion under item 6. Does any Member object? [Objection.] Objecting. Okay. Thank you. Well, we'll defer voting on that item until voting time.

The proposal is to agree the motion under item 7. Does any Member object? [Objection.] Therefore, we defer voting under this item until voting time.

Voting deferred until voting time.

Item 8, item 9 and item 10 all refer to the land disposals tax Wales regulations. Again, in accordance with Standing Order 12.24, I propose the following three motions, under items 8, 9 and 10, are grouped for debate. Does any Member object? [Objection.] Right. Okay, so we'll take them separately.