TC09680 - [2025] UKFTT 01332 (TC)

Here it is abundantly clear that when Note 8, which defines “state regulated”, was inserted into VATA 1994 by the Value Added Tax (Health and Welfare) Order 2002 what the draftsman was trying to do, in the definition of “Act”, was to capture all entities that could then (or in the recent past) enact primary legislation. The omission of the National Assembly for Wales reinforces this purpose – as then it could only pass delegated legislation. The draftsman’s purpose was therefore that all primary legislation would be covered by the definition of “Act”.

It is also abundantly clear, from the discussion in Agricultural Sector (Wales) Bill, that when GWA 2006 was passed the purpose of that Act was to separate and redefine the functions of the National Assembly for Wales and the Welsh Assembly Government and to devolve competence to the National Assembly for Wales to make Measures which could amend primary UK legislation. Its purpose was also to provide for further devolution of competencies to the National Assembly for Wales, under the “third phase” of devolution, if approved by a referendum. Its purpose was not to change the VAT treatment of social care in Wales, should the National Assembly for Wales choose to pass Measures regulating it. It was not the purpose of the GWA 2006, as originally enacted, to alter arrangements in relation to taxation in Wales. That is apparent from the discussion in Agricultural Sector (Wales) Bill. It is also apparent from the text of GWA 2006, where the only references to taxation are: