I’m grateful to both those committees for their important reports at the end of the Stage 1 consideration of this Bill. Clearly, there are points of detail in both committees’ reports that will need to be carefully considered. Much of what I will say this afternoon, Dirprwy Lywydd, focuses on those issues highlighted during that Stage 1 scrutiny process. I’ve written to the Chairs of both the Finance Committee and CLAC to provide additional information and clarity in relation to some of their recommendations. I intend to write further to the Finance Committee to respond to each one of the recommendations in its report, and I’m pleased to confirm today that I can accept two of the three recommendations in the Constitutional and Legislative Affairs Committee’s consideration.

I’m going to try to deal in turn with a series of particular issues that are highlighted in those reports. I’m going to begin with the issue of guidance because, understandably, throughout the history of the Bill, both in its preparation and in its Stage 1 scrutiny, there has been a great deal of discussion about the importance of robust guidance. In particular, there’s been a focus on the general anti-avoidance rule, the targeted anti-avoidance rule for the reliefs that can be claimed, the differences between land transaction tax and stamp duty land tax legislation, and cross-border transactions. The theme of making sure that there is up-to-date, accurate and accessible guidance has rightly been reflected in the committee’s report on the general principles of the Bill.

I acknowledge the Finance Committee’s desire to understand the process for developing the guidance until it will go live in April 2018, and on this basis I’m happy to accept the committee’s recommendations in relation to these matters. I’ve had previous correspondence with the Chair of the Finance Committee as the scrutiny process unfolded and I explained in that correspondence that the development of guidance will be a matter for the Welsh Revenue Authority. I am keen to ensure that the WRA works with stakeholders as soon as possible to develop high-quality, user-friendly and effective guidance. A working group will be established in the first part of this year, involving people who work in the field, technical experts from beyond the Assembly, and my own officials, to discuss technical and operational issues and to help with the drafting of the guidance.

This will be an iterative process, but final guidance will be ready for sharing and discussion with taxpayers and their agents in good time to help their understanding of the new tax regime. I’m keen to continue to keep the National Assembly informed of progress in establishing the WRA. The Finance Committee’s second recommendation is that such updates should be provided termly and I’m happy to work to that timetable.

As to costs, the latest annual report on the Wales Act 2014 laid before the Assembly in December confirms that our current estimates have not changed since they were published last year. I will be in a position to provide an update on costs shortly, when a further set of decisions have been determined about the organisational design of the WRA and a confirmed cost secured for digital services. I will write to the Finance Committee before Stage 2 proceedings to provide an update on the work to develop cost estimates and to set out when a final, revised estimate will be available.

Dirprwy Lywydd, I turn now to the question of the additional dwelling surcharge. On 14 October I announced my intentions to propose amendments to the Bill during Stage 2 to introduce such a surcharge. I did so because, for this Government, the delivery of Welsh public services is of paramount importance, and for these purposes, the additional revenues generated by the surcharge is vital. It’s my intention that the additional dwelling surcharge will broadly follow the SDLT higher-rates rules. However, I will take the opportunity, in bringing forward Stage 2 amendments, to make the rules clearer and, where possible, fairer, in order to improve their application. I remain committed to ensuring the surcharge provisions are suitable to the needs of Wales. A range of suggestions were put forward by stakeholders on how to do so during the recent technical consultation. These will need to be properly assessed alongside evidence of the impact of the SDLT higher rates as this becomes available. Dirprwy Lywydd, this is one of the reasons for taking a subordinate legislation-making power to amend the additional dwelling surcharge, should emerging evidence indicate that this is necessary. These regulations would be subject to the affirmative procedure. This is an important component of the legislation as it will enable us to futureproof and manage the surcharge effectively. I’m grateful to the Constitutional and Legislative Affairs Committee, in this connection, for their consultation that the Bill strikes the right balance between what is included on the face of the Bill and what is left to subordinate legislation, and that other than in one instance, the procedure chosen in relation to the making of subordinate legislation is one that the committee regarded as reasonable and proportionate.

I turn now to cross-border questions. I agree with the Finance Committee’s emphasis on the need for a collaborative approach to be taken between HMRC, the WRA, the Land Registry and the Valuation Office Agency. I have written to the committee outlining the work already in progress. Options will now be explored as to how best to assist taxpayers in identifying where the border lies on respective titles. I will also look to those bodies to work together to deliver an integrated approach to other operational and policy issues, including, importantly, enforcement and compliance.

I turn now to reliefs. Stakeholders have been clear in their desire for consistency with SDLT in relation to reliefs and exemptions. I intend to monitor the uptake and value of residential and non-residential reliefs, because my approach to amending reliefs, or to introducing new ones in the future, will be the one I set out to the Finance Committee. This requires that potential new reliefs should be aligned with Welsh Ministers’ priorities, that they’re cost-effective, that they reach their intended policy target, and that they are rooted in best evidence.

In response to recommendation 11 of the Finance Committee’s report, I intend to propose a rule, through a Stage 2 amendment, that sets out how co-ownership authorised contractual schemes are to be treated for tax purposes. The rule ensures that we can consider introducing a seeding relief for CoACS and property authorised investment funds in the future when there is sufficient evidence to do so.

As to rates and bands, I can confirm my intention this afternoon to announce the tax rates for all devolved taxes in good time before April 2018. The specific timing of any announcement will take into account the possible behavioural impacts of announcements on taxpayers, and the requirements of the budgetary process. In the meantime, I will continue to engage with stakeholders and organisations about rates and bands, as with any other important budgetary matter. In this way, I believe we will fulfil the spirit of the committee’s tenth recommendation of a full and extensive consultation on rates and bands. It’s important for me to say that there is no precedent set by the UK or the Scottish Governments for a formal consultation before setting their rates. This does not, however, preclude an ongoing engagement and dialogue, and I remain committed to that.

Finally, Dirprwy Lywydd, to place all this in the wider policy context, I welcome the Wales Audit Office's report, which highlights the progress made over the past year on the fiscal reform agenda. The auditor general recognises that this is a complex area, and this Bill is one of its significant milestones.

I am also pleased to have reached the agreement with the Chief Secretary to the Treasury on what I believe to be a fair fiscal framework within which this and other devolved taxes will operate. I look forward to discussing the details of the framework with the Finance Committee tomorrow and to making an oral statement on it in this Chamber next week.

Throughout this programme of work, we’ve benefited from the advice and support of many individuals and organisations. I am grateful for their assistance and look forward to continuing to work with them in the coming years.

The successful passage of this Bill, should it progress through the National Assembly, will send a message that Wales remains ambitious and confident in taking on this next key step in the devolution of taxes. I ask Members to agree to the general principles of the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Bill this afternoon.