The Wales Act 2014 (Commencement No. 2) Order 2018

EXPLANATORY NOTE

(This note is not part of the Order)

Article 3 of this Order appoints 24th July 2018 as the day on which sections 8 and 9 of the Wales Act 2014 (c. 29) (the “2014 Act”) come into force. Section 8 of the 2014 Act amends section 116A(1) of the Government of Wales Act 2006 (c. 32) (“GOWA 2006”) and inserts sections 116D to 116K into that Act. Section 9 of the 2014 Act amends section 6 of the Income Tax Act 2007 (c. 3) (“ITA 2007”) and inserts sections 6B and 11B into that Act. These amendments give the National Assembly for Wales the power to resolve to set one or more Welsh rates of income tax for Welsh taxpayers (“a Welsh rate resolution”).

Article 4 of this Order appoints 24th July 2018 as the day on which section 11(5), (6), (7)(a) and (8)(a) of the 2014 Act comes into force. Section 11 amends section 80D of the Scotland Act 1998 and inserts section 80DA into that Act. These amendments amend the definition of a Scottish taxpayer to ensure that an individual cannot be a Welsh taxpayer and a Scottish taxpayer in the same year and to make special provision for Welsh parliamentarians.

Article 5 of this Order provides that the amendments made by sections 8 and 9 of the 2014 Act have effect in relation to the tax year 2019-20 and subsequent tax years.

Article 6 of this Order appoints the tax year 2019-20 as the first tax year in respect of which a Welsh rate resolution under section 116D of Part 4A of GOWA 2006 may be made by the National Assembly for Wales.

Article 7 of this Order provides that the amendments made by section 11(5), (6), (7)(a) and (8)(a) of the 2014 Act have effect in relation to the tax year 2019-20 and subsequent tax years.

Article 8 of this Order provides that section 116K of GOWA 2006 has effect in relation to the financial year ending on 31st March 2018 and subsequent financial years.

An Impact Assessment covering this instrument was published on 10th June 2014 alongside the draft clauses and explanatory notes for the Wales Bill and is available on the website at https://www.parliament.uk/documents/impact-assessments/IA14-12.pdf. It remains an accurate summary of the impacts that apply to this instrument.