Corporation Tax (Wales) Bill

#Corporation Tax (Wales) Bill

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*A Bill to make provision for and in connection with the devolution of corporation tax to the Senedd Cymru.*

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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:—

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**1 Welsh rate of corporation tax**

(1) Part 4A of the Government of Wales Act 2006 is amended as follows.

(2) Omit section 116A(1) and insert-

>(1) In this Part-

>>(a) Chapter 2 confers on the Assembly power to set rates of income tax to be paid by Welsh taxpayers, and

>>(b) Chapters 3, 4 and 5 specify particular taxes as devolved taxes about which the Assembly may make provision in the exercise of the power conferred by section 107(1).

(3) After Chapter 4 insert-

**CHAPTER 5**

Corporation Tax

**116O Corporation Tax**

(1) A tax charged on the profits of a Welsh company is a devolved tax.

(2) In this chapter a company is a "Welsh company" in an accounting period if the company carries on a trade in the period and is a Welsh employer in relation to the period.

(3) In this chapter a company is a "Welsh employer" in relation to an accounting period where a majority of the working time that is spent in the United Kingdom during the period by members of the company’s workforce is spent in Wales.

**2 Extent, short title and commencement**

(1) This Act extends to the whole of the United Kingdom.

(2) This Act comes into force on the day of royal assent.

(3) This Act may be cited as the Corporation Tax (Wales) Act 2020.

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This Bill was submitted by [The Baron of Chorley](/u/plebit2020) on behalf of the Progressive Party UK and Sir /u/cthulhuiscool2 KD CB CVO KBE PC AM, Member of Parliament for Surrey, on behalf of the Libertarian Party Cymru. This Bill is sponsored by the Liberal Democrats and Solidarity.

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Mr Deputy Speaker,

The foremost argument in favour of this Bill is to respect Welsh Democracy. As a democrat I know this to be a persuasive argument and one which ought to carry a great deal of weight in this place. In late August the Senedd Cymru – with cross party support – passed the Motion to Request the Devolution of Corporation Tax to the Senedd. As the title of this motion suggests the people of Wales have demanded the devolution of corporation tax through their elected representatives. This is a request we have no right to deny or frustrate.

The house will also remember the debate of the Corporation Tax (Northern Ireland) Bill. And the argument that was made and made repeatedly was one that follows these lines: That Northern Ireland ought to control corporation tax to compete with the Republic of Ireland. Is this a strong argument? I think so. This was the argument made by the government. Let me tell you Mr Deputy Speaker – if corporation tax is devolved to the Northern Ireland Assembly corporation tax must also be devolved to the Senedd Cymru. If this is not the case Northern Ireland will enjoy a favourable position or competitive advantage over Wales with the ability to set its own rate. In other words, Mr Deputy Speaker, every argument made in favour of the Corporation Tax (Northern Ireland) Bill can and must be made in favour of this Bill. I would accuse any member who supports devolution to one and not the other of a discrimination. There is simply no logical or meaningful argument to deny Wales.

/u/cthulhuiscool2