Diolch yn fawr, Llywydd. These are the Welsh Tax Acts (Miscellaneous Amendments) (EU Exit) Regulations 2019. We considered these regulations at the Constitutional and Legislative Affairs Committee meeting on 18 March. We reported two technical points to the Assembly under Standing Order 21.2(ii).

The first point is complex and concerns the unusual way of using the powers given to the Welsh Ministers under the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017. The regulations say that an EU or an EEA co-ownership authorised contractual scheme will no longer receive the same preferential treatment as a UK co-ownership authorised contractual scheme. Now, as everybody knows, a co-ownership authorised contractual scheme is a type of tax-transparent fund structure. But since the 2017 Act gives EU and EEA schemes that same preferential treatment, it seems unlikely the Assembly ever intended that the regulation-making powers in the 2017 Act would be used to reverse an important part of the 2017 Act. However, the changes are needed as a result of exiting the EU. The European Union (Withdrawal) Act 2018 prohibits this kind of change, so the only option available to the Welsh Ministers was to use powers under the 2017 Act. This is therefore very complex.

In its response, the Welsh Government acknowledges that the circumstances giving rise to the use of the powers, namely the preparations for the UK’s exit from the EU in a 'no deal' scenario, are exceptional and unusual. The Welsh Government considers that the use of the powers is appropriate and necessary. 

Our second point concerns a problem with the definition of 'collective investment scheme' in section 36(12) of the 2017 Act, which will become redundant as a result of the amendments made by these regulations. The Welsh Government accepts this point and while the legal effect of this definition is now redundant, it will repeal this definition in the next appropriate piece of legislation. Diolch yn fawr, Llywydd.