Diolch, Llywydd. In group 4, a few moments ago, we debated a set of changes to improve the fairness of the operation of the higher rates surcharge, and the amendments in this group return to that theme. In my letter to the Finance Committee on 15 February, I set out my intention to bring forward changes in this group, which seek to ensure that a dwelling acquired and held by a deputy on behalf of a minor who lacks mental capacity, in accordance with the Mental Capacity Act 2005, is not deemed to be acquired or owned by that child’s parents.

Once again, this anomaly in current SDLT legislation was identified through engagement with technical experts. The objective of this group of amendments, then, is to make the legislation fairer, and ensure that incapacitated minors and their court-appointed deputies are not disadvantaged as a result of the LTT surcharge.

The result of Amendment 14 is that when determining whether the higher rate applies to circumstances where an incapacitated child’s interest in acquired, held on trust, or disposed of by a deputy acting on their behalf, any interest held by the child’s parents in a separate property will be unconnected. This change will make the legislation fairer by ensuring that the child’s interest in a property is not subject to the higher rates charge. Equally, any transaction by the parents of an incapacitated child in these circumstances will be considered independently of the child’s property interests.

Amendment 21 has the same effect as amendment 14, the differentiation being it is applied in relation to interests outside of Wales. Llywydd, it’s anticipated that there will be a very small number of cases in which these rules apply, and that this will have a minimal impact on revenues. The use of these rules will be kept under review, but I hope that in the interest of fairness they will be supported by the Assembly this afternoon.