# Wales Act 2014

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U.K.

# Wales Act 2014

# 2014 CHAPTER 29

An Act to make provision about elections to and membership of the National Assembly for Wales; to make provision about the                        Welsh Assembly Government; to make provision about the setting by the Assembly of rates of income tax to be paid by Welsh                        taxpayers and about the devolution of taxation powers to the Assembly; to make related amendments to Part 4A of the Scotland                        Act 1998; to make provision about borrowing by the Welsh Ministers; to make miscellaneous amendments in the law relating to                        Wales; and for connected purposes.                     

[17th December 2014]

Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons,                           in this present Parliament assembled, and by the authority of the same, as follows:—                        

## **PART 1**U.K.The Assembly and Welsh Government

### National Assembly for WalesU.K.

#### 1Frequency of Assembly ordinary general electionsU.K.

(1)In section 3(1) of GOWA 2006 (date of Assembly ordinary general elections), for “fourth” substitute “ fifth ”.                  

(2)Accordingly, in the Fixed-term Parliaments Act 2011 omit section 5 (date of next Assembly ordinary general election).                  

#### 2Removal of restriction on standing for election for both constituency and electoral regionU.K.

(1)GOWA 2006 is amended as follows.                  

(2)In section 7 (candidates at general elections)—                  

(a)in subsection (5), for paragraph (c) (and the “or” before it) substitute—                  

“(c)who is a candidate to be the Assembly constituency member for an Assembly constituency which is not included in the Assembly                           electoral region, or                  

(d)who is a candidate to be the Assembly constituency member for an Assembly constituency included in the Assembly electoral                           region but is not a candidate of the party.”;                  

(b)in subsection (6), for paragraph (c) (and the “or” before it) substitute—                  

“(c)a candidate to be the Assembly constituency member for an Assembly constituency which is not included in the Assembly electoral                           region, or                  

(d)a candidate of any registered political party to be the Assembly constituency member for an Assembly constituency included                           in the Assembly electoral region.”                  

(3)In section 9 (allocation of seats to electoral region members)—                  

(a)in subsection (4), after “as an” insert “ Assembly constituency member or ”;                  

(b)in subsection (5), at the end insert “ (disregarding anyone already returned as an Assembly constituency member, including anyone whose return is void) ”;                  

(c)in subsection (6), for the words from “by the return” to “(2)” substitute “ (by the return of persons included on it as Assembly constituency members or by the previous application of subsection (1)                           or (2)) ”.                  

(4)In section 11(8) (electoral region vacancies)—                  

(a)for paragraphs (a) to (c) substitute—                  

“(a)was returned as an Assembly member at that election (even if the return was void), or                  

(b)has subsequently been returned under section 10 or this section (even if the return was void),”;                  

(b)in the words after paragraph (c) omit “, or of the successful candidate at the election,”.                  

#### 3MPs to be disqualified from membership of AssemblyU.K.

(1)In section 16(1) of GOWA 2006 (disqualification from being Assembly member), before paragraph (a) insert—                  

“(za)is a member of the House of Commons (but see sections 17A and 17B),”.                  

(2)After section 17 of that Act insert—                  

##### “17AException from disqualification by virtue of being an MP: recently elected members

(1)A person returned at an election as an Assembly member is not disqualified under section 16(1)(za) (disqualification by virtue                           of being an MP) at any time in the period of 8 days beginning with the day the person is so returned.                  

(2)Subsection (3) applies where a person—                  

(a)is returned at an election as an Assembly member,                  

(b)on being so returned is a candidate for election to the House of Commons, and                  

(c)is subsequently returned at that election as a member of that House.                  

(3)The person is not disqualified under section 16(1)(za) at any time in the period of 8 days beginning with the day the person                           is returned as a member of the House of Commons.                  

(4)A person is a “candidate for election to the House of Commons” if the person's nomination paper for election as a member of                           the House of Commons has been delivered to the returning officer under rule 6 of Schedule 1 to the Representation of the People                           Act 1983 (parliamentary election rules).                  

##### 17BException from disqualification by virtue of being an MP: general election of Assembly members within 372 days

(1)This section applies if—                  

(a)an Assembly member is returned as a member of the House of Commons, and                  

(b)the expected day of the next general election of Assembly members is within the period of 372 days beginning with the day                           the person is so returned (“the return day”).                  

(2)The member is not disqualified under section 16(1)(za) (disqualification by virtue of being an MP) at any time in the period—                  

(a)beginning with the return day, and                  

(b)ending immediately before the day of the next general election of Assembly members.                  

(3)For the purposes of subsection (1)(b) the expected day of the next general election of Assembly members is to be determined                           by reference to the circumstances as at the beginning of the return day (“the relevant time”).                  

(4)Where, at the relevant time, section 5(2) or (3) (extraordinary general elections) applies—                  

(a)if an Order in Council under section 5(4) has been made, the expected day is the day on which the poll is required to be held                           in accordance with that Order;                  

(b)if no Order in Council under section 5(4) has been made but a day has been proposed under section 5(1), that is the expected                           day;                  

(c)otherwise, the expected day is to be treated as being within the period mentioned in subsection (1)(b).                  

(5)For the purpose of determining the expected day, no account is to be taken of the possibility of—                  

(a)an order under section 4 (power to vary date of ordinary general election) being made after the relevant time, or                  

(b)section 5(2) or (3) (extraordinary general elections) first applying after that time.                  

(6)References in this section to the “day” of the election are to the day on which the poll at the election is held.”                  

(3)The National Assembly for Wales (Representation of the People) Order 2007 (S.I. 2007/236) is amended as follows.                  

(4)In article 34 (false statements in nomination papers), at the end of paragraph (5)(c) insert “ or to the best of his knowledge and belief he is disqualified only under section 16(1)(za) of the 2006 Act (disqualification                           of MPs) ”.                  

(5)In Schedule 5 (Assembly election rules), in rule 9(4)(c)(ii) (consent to nomination) after “Assembly” insert “ or that to the best of his knowledge and belief he is disqualified for membership of the Assembly only under section 16(1)(za)                           of the 2006 Act (disqualification of MPs) ”.                  

### Welsh GovernmentU.K.

#### 4The Welsh GovernmentU.K.

(1)The Welsh Assembly Government is renamed the Welsh Government, or Llywodraeth Cymru.                  

(2)Accordingly, in GOWA 2006—                  

(a)omit “Assembly” wherever it occurs in the expression “Welsh Assembly Government”;                  

(b)omit “Cynulliad” where it occurs in section 45(1) (in both places).                  

(3)In the following sections of GOWA 2006, as amended by subsection (2), the references to the Welsh Government include, in relation                        to any time before the coming into force of this section, references to the Welsh Assembly Government—                  

(a)section 37(5) (power to impose requirements on current or former members of staff of the Government);                  

(b)section 52(7)(a) and (8) (power to pay pensions in respect of current or former members of staff of the Government).                  

(4)Unless the context requires otherwise, in any enactment, instrument or other document passed or made before the date on which                        this section comes into force (except GOWA 2006 - as to which see subsections (2) and (3))—                  

(a)any reference to the Welsh Assembly Government is to be read as, or as including, a reference to the Welsh Government, and                  

(b)any reference to Llywodraeth Cynulliad Cymru is to be read as, or as including, a reference to Llywodraeth Cymru.                  

#### 5First Minister: removal of power to designate after dissolution of AssemblyU.K.

In section 46 of GOWA 2006 (the First Minister), at the end of subsection (5)(c) (designation if First Minister ceases to                     be Assembly member) insert “ otherwise than by reason of a dissolution ”.                  

## **PART 2**U.K.Finance

### IntroductoryU.K.

#### 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### Welsh rates of income taxU.K.

#### 8Welsh rates of income taxU.K.

#### 9Welsh basic, higher and additional rates of income taxU.K.

Prospective

#### 10Welsh taxpayers for social security or child support purposesU.K.

#### 11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### Referendum on income tax provisionsU.K.

#### 12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### Welsh tax on land transactionsU.K.

#### 15Welsh tax on transactions involving interests in landU.K.

#### 16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 17Information on Welsh land transactionsU.K.

### Welsh tax on disposals to landfillU.K.

#### 18Welsh tax on disposals to landfillU.K.

#### 19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### BorrowingU.K.

#### 20Borrowing by the Welsh MinistersU.K.

Prospective

#### 21Repeal of existing borrowing powerU.K.

### Budgetary proceduresU.K.

#### 22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### ReportsU.K.

#### 23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

## **PART 3**U.K.Miscellaneous

Prospective

### 24Local housing authorities: limits on housing revenue account debtU.K.

(1)Part 6 of the Local Government and Housing Act 1989 (housing finance) is amended as follows.                     

(2)After section 76 insert—                     

#### “76ALimits on indebtedness

(1)The Treasury may from time to time make a determination providing for the maximum amount of housing debt that may be held,                              in aggregate, by local housing authorities in Wales that keep a Housing Revenue Account.                     

(2)The Welsh Ministers may from time to time make a determination providing for the calculation in relation to each such authority                              of—                     

(a)the amount of housing debt that, at such time and on such assumptions as the Welsh Ministers may determine, is to be treated                              as held by the authority, and                     

(b)the maximum amount of such housing debt that the authority may hold.                     

(3)The Welsh Ministers must make a determination under subsection (2) in relation to each authority within the period of 6 months                              beginning immediately after the day on which the Treasury makes a determination under subsection (1).                     

(4)The aggregate of the amounts determined under subsection (2)(b) must not exceed the amount determined under subsection (1).                     

(5)A local housing authority may not hold debt in contravention of a determination under subsection (2)(b).                     

(6)A determination under this section may, in particular, provide for all or part of an amount to be calculated in accordance                              with a formula or formulae.                     

(7)A determination under this section may provide for assumptions to be made in making a calculation whether or not those assumptions                              are, or are likely to be, borne out by events.                     

(8)As soon as practicable after making a determination under subsection (1), the Treasury must—                     

(a)send a copy of it to the Welsh Ministers, and                     

(b)lay a copy of it before the House of Commons.                     

(9)For the purposes of this section a debt is a “housing debt”, in relation to a local housing authority, if—                     

(a)the debt is held by the authority in connection with the exercise of its functions relating to houses and other property within                              its Housing Revenue Account, and                     

(b)interest and other charges in respect of the debt are required to be carried to the debit of that account.                     

#### 76BPower to obtain information

(1)A local housing authority in Wales, and any officer or employee of a local housing authority in Wales concerned with their                              housing functions, must supply the Welsh Ministers with such information as the Welsh Ministers may specify, either generally                              or in any particular case, for the purpose of enabling the Welsh Ministers to exercise their functions under section 76A.                     

(2)A local housing authority must supply the Welsh Ministers with such certificates supporting the information required by them                              as they may specify.                     

(3)If a local housing authority, or any officer or employee of a local housing authority concerned with their housing functions,                              fails to comply with subsection (1) or (2) before the end of such period as the Welsh Ministers may specify, the Welsh Ministers                              may exercise their functions under section 76A on the basis of such assumptions and estimates as they see fit.”                     

(3)Section 87 (determinations and directions) is amended as follows.                     

(4)For “the Secretary of State” (in each place) substitute “ the appropriate person ”.                     

(5)After subsection (1) insert—                     

“(1A)Subsection (1)(b) does not apply to determinations under section 76A(2).”                     

(6)In subsection (2)—                     

(a)for “him” substitute “ that person ”;                     

(b)for “he” substitute “ the appropriate person ”.                     

### 25The work of the Law Commission so far as relating to WalesU.K.

(1)The Law Commissions Act 1965 is amended as follows.                  

(2)In section 3(1) (functions of the Commissions), after paragraph (e) insert—                  

“(ea)in the case of the Law Commission, to provide advice and information to the Welsh Ministers;”.                  

(3)In section 3A (reports on implementation of Law Commission proposals), after subsection (6) insert—                  

“(7)This section does not require the Lord Chancellor to prepare reports on Law Commission proposals on which the Welsh Ministers                           are required to report (see section 3C).”                  

(4)After section 3B insert—                  

#### “3CReport on implementation of Law Commission proposals: Wales

(1)The Welsh Ministers must prepare a report each year on—                  

(a)the Law Commission proposals relating to Welsh devolved matters that have been implemented since the preparation of the previous                           report under this section;                  

(b)the Law Commission proposals relating to Welsh devolved matters that have not been implemented as at the preparation of the                           report.                  

(2)The report required under subsection (1)(b) must include—                  

(a)plans for dealing with any of the proposals described in that paragraph;                  

(b)any decision not to implement any of those proposals taken since the preparation of the previous report under this section;                  

(c)the reasons for any such decision.                  

(3)The Welsh Ministers must lay the report before the National Assembly for Wales.                  

(4)The Welsh Ministers must prepare a report under this section—                  

(a)before the first anniversary of the day on which this section comes into force, and                  

(b)thereafter, before each subsequent anniversary of that day.                  

(5)In the case of the first report, the references in subsections (1) and (2) to the period since the preparation of the previous                           report are to be read as references to the period since the coming into force of this section.                  

(6)If a decision not to implement a Law Commission proposal is dealt with in a report under this section, subsection (1)(b) does                           not require a later report to deal with the proposal so far as it is covered by that decision.                  

(7)If a decision not to implement a Law Commission proposal has been taken before the coming into force of this section, subsection                           (1)(b) does not require any report to deal with the proposal so far as it is covered by that decision.                  

(8)In this section—                  

(a)“Law Commission proposal” means any proposal or recommendation for the reform of the law that has been published in a report by the Law Commission,                           and                  

(b)references to the implementation of a Law Commission proposal are to its implementation in whole or in part.                  

(9)Whether a Law Commission proposal relates to Welsh devolved matters is to be determined in accordance with section 3D(8).                  

#### 3DProtocol about the Law Commission's work: Wales

(1)The Welsh Ministers and the Law Commission may agree for the purposes of this section a statement (a “protocol”) about the                           Law Commission's work relating to Welsh devolved matters.                  

(2)The protocol may include (among other things) provision about—                  

(a)the principles and methods to be applied in deciding the work relating to such matters to be carried out by the Law Commission                           and in the carrying out of that work;                  

(b)the assistance and information that the Welsh Ministers and the Law Commission are to give to each other;                  

(c)the way in which the Welsh Ministers are to deal with Law Commission proposals so far as they relate to Welsh devolved matters.                  

(3)The Welsh Ministers and the Law Commission must from time to time review the protocol and may agree to revise it.                  

(4)The Law Commission must not agree the protocol (or any revision of it) without the Lord Chancellor's approval.                  

(5)The Welsh Ministers must lay the protocol (and any revision of it) before the National Assembly for Wales.                  

(6)The Welsh Ministers and the Law Commission must have regard to the protocol.                  

(7)“Law Commission proposal” has the meaning given in section 3C(8)(a).                  

(8)In this section and section 3C, the Law Commission's work (including any of their proposals) relates to Welsh devolved matters                           so far as it relates to—                  

(a)any matter provision about which would be within the legislative competence of the National Assembly for Wales if it were                           contained in an Act of the Assembly, or                  

(b)(so far as it is not within paragraph (a)), any matter functions with respect to which are exercisable by the Welsh Ministers,                           the First Minister for Wales, the Counsel General to the Welsh Government or the National Assembly for Wales Commission.”                  

(5)In section 5(4) (expenses to be paid out of money provided by Parliament), after “Parliament” insert “ (except to the extent that those expenses are met by the Welsh Ministers) ”.                  

## **PART 4**U.K.General

### 26OrdersU.K.

Any power to make an order under this Act is exercisable by statutory instrument.

### 27InterpretationU.K.

In this Act—
          -  “the Assembly” means the National Assembly for Wales;                         
          -  “enactment” includes a Measure or Act of the Assembly and subordinate legislation (within the meaning of the Interpretation Act 1978);                         
          -  “financial year” means the 12 months ending with 31 March;                         
          -  “GOWA 2006” means the Government of Wales Act 2006;                         
          -  “modifications” includes amendments, repeals and revocations;                         
          -  “tax year” means a year beginning on 6 April and ending on the following 5 April.                         

### 28Power to make supplementary, consequential, etc provisionU.K.

(1)The Treasury may by order make—                  

(a)such supplementary, incidental or consequential provision as appears appropriate in connection with the provisions of Part                        2, and                  

(b)such transitional, transitory or saving provision as appears appropriate in connection with the coming into force of those                        provisions.                  

(2)An order under this section may make—                  

(a)different provision for different cases or classes of case or different purposes;                  

(b)provision which applies generally or subject to specified exceptions or only in relation to specific cases or classes of case.                  

(3)An order under this section may make modifications of this Act or of an enactment passed or made before the passing of this                        Act or in the session in which this Act is passed.                  

(4)A statutory instrument containing an order under this section which includes provision modifying any provision of an Act or                        a Measure or Act of the Assembly may not be made unless a draft of the instrument has been laid before, and approved by a                        resolution of, the House of Commons.                  

(5)Any other statutory instrument containing an order under this section is subject to annulment in pursuance of a resolution                        of the House of Commons.                  

(6)In this section, references to the provisions of Part 2 do not include section 10 (Welsh taxpayers for social security or                        child support purposes).                  

### 29CommencementU.K.

(1)This Part comes into force on the day on which this Act is passed.                  

(2)The following provisions come into force at the end of the period of 2 months beginning with the day on which this Act is                        passed—                  

(a)Part 1;                  

(b)Part 2, except the referendum-related provisions and sections 20 and 21;                  

(c)section 25.                  

(3)Subsection (2)(b) is subject to the provision made in the following sections as to how those sections have effect—                  

(a)sections 15, 16 and 17;                  

(b)sections 18 and 19.                  

(4)The “referendum-related provisions” are sections 8, 9, 10 and 11(5), (6), (7)(a) and (8)(a); they come into force in accordance                        with section 14 (commencement if majority in favour at referendum).                  

(5)The following provisions come into force on such day as the Treasury may by order appoint—                  

(a)section 20;                  

(b)section 24.                  

(6)An order under subsection (5) may appoint different days for different purposes.                  

(7)Section 21 comes into force on the day on which section 121(1A) of GOWA 2006 (inserted by section 20) comes into force.                  

### 30Extent and short titleU.K.

(1)The amendments and repeals made by this Act have the same extent as the enactments amended or repealed.                  

(2)Subject to that, this Act extends to the United Kingdom.                  

(3)This Act may be cited as the Wales Act 2014.                  

# SCHEDULES

 Section 12

## SCHEDULE 1U.K.Referendum about commencement of income tax provisions

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

 Section 16

## SCHEDULE 2U.K.Welsh tax on land transactions: consequential amendments

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .