w ‘(1) Part 4A of the Government Wales Act 2006 is amended as follows.
(2) In section 116A(1)(a) (overview), after “of” insert “and thresholds for”.
(3) After section 116D insert—
“116DA Power to set Welsh thresholds for Welsh taxpayers
(1) The Assembly may by resolution (a “Welsh threshold resolution”) set one or more of the following—
(a) a Welsh threshold for the Welsh basic rate,
(b) a Welsh threshold for the Welsh higher rate,
(c) a Welsh threshold for the Welsh additional rate.
(2) A Welsh threshold resolution applies—
(a) for only one tax year, and
(b) for the whole of that year.
(3) A Welsh threshold resolution—
(a) must specify the tax year for which it applies,
(b) must be made before the start of that tax year, and
(c) must not be made more than 12 months before the start of that year.
(4) If a Welsh threshold resolution is cancelled before the start of the tax year for which it is to apply—
(a) the Income Tax Acts have effect for that year as if the resolution had never been made, and
(b) the resolution may be replaced by another Welsh threshold resolution.
(5) The standing orders must provide that only the First Minister or a Welsh Minister appointed under section 48 may move a motion for a Welsh threshold resolution.”’—(Jonathan Edwards.)
This new clause would allow the National Assembly for Wales to determine the income thresholds at which income tax is payable by Welsh taxpayers.
Brought up, and read the First time.
Question put, That the clause be read a Second time:—
The House divided:
Ayes 46, Noes 273.