Welsh Ministers Extend Tax Act Regulation Power Expiry to April 2031

UK New Legislation

Published March 20th, 2026

Detected March 19th, 2026

Summary

The Welsh Ministers have issued regulations extending the expiry date of the power to modify tax acts under the Welsh Tax Acts etc. (Power to Modify) Act 2022. This power, originally set to expire on September 8, 2027, will now continue in force until April 30, 2031.

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What changed

The Welsh Ministers, through the Welsh Tax Acts etc. (Power to Modify) Act 2022 (Extension of Expiry Date) Regulations 2026, have extended the regulatory power granted by the Welsh Tax Acts etc. (Power to Modify) Act 2022. This power, which allows the Welsh Ministers to modify certain tax legislation, was originally set to expire on September 8, 2027. The new regulations extend this expiry date to April 30, 2031, following a review of the 2022 Act's operation and effect.

These regulations are now in force as of March 20, 2026. Regulated entities and tax professionals in Wales should note the extended timeframe for potential modifications to tax legislation. While no immediate compliance actions are required, awareness of this extended regulatory authority is important for future planning and understanding the scope of potential legislative changes affecting taxation in Wales.

Source document (simplified)

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This is the original version (as it was originally made). This item of legislation is currently only available in its original format.

Welsh Statutory Instruments

2026 No. 86

TAXES, WALES

The Welsh Tax Acts etc. (Power to Modify) Act 2022 (Extension of Expiry Date) Regulations 2026

Made

18 March 2026

Coming into force

20 March 2026

The Welsh Ministers, in exercise of the power conferred on them by section 7(2) of the Welsh Tax Acts etc. (Power to Modify) Act 2022(1) (“ the 2022 Act ”), make the following Regulations.

In accordance with section 7(5)(a) of the 2022 Act, a draft of this Welsh statutory instrument was not laid before Senedd Cymru before the Welsh Ministers published the conclusions of the review of the operation and effect of the 2022 Act under section 6 of the 2022 Act on 13 February 2026.

In accordance with section 7(5)(b) of the 2022 Act, this Welsh statutory instrument was approved by a resolution of Senedd Cymru before the end of the period of 5 years beginning with the day on which the 2022 Act came into force.

In accordance with the Senedd approval procedure applied by section 7(4) of the 2022 Act a draft of this Welsh statutory instrument was laid before, and approved by resolution of, Senedd Cymru.

Title and coming into force

—(1) The title of these Regulations is the Welsh Tax Acts etc. (Power to Modify) Act 2022 (Extension of Expiry Date) Regulations 2026.

(2) These Regulations come into force on 20 March 2026.

Extension of the expiry date of the regulation making power

The power in section 1 of the Welsh Tax Acts etc. (Power to Modify) Act 2022 is not to expire at the end of 8 September 2027 in accordance with section 7(1) of that Act; it is to continue in force for a further period beginning with 9 September 2027 and ending with 30 April 2031.

Mark Drakeford

Cabinet Secretary for Finance and Welsh Language, one of the Welsh Ministers

18 March 2026

EXPLANATORY NOTE

(This note is not part of the Regulations)

Section 1(1) of the Welsh Tax Acts etc. (Power to Modify) Act 2022 (“ the 2022 Act ”) provides that the Welsh Ministers may make regulations which modify certain legislation (defined in section 1(3) of the 2022 Act) and regulations made under that legislation, if the Welsh Ministers consider that the modifications are necessary or appropriate for or in connection with the purposes set out in section 1(1)(a) to (d) of the 2022 Act, subject to the restrictions in sections 1(2) and 2 of the 2022 Act.

Section 7(1) of the 2022 Act provides that the power under section 1 of the 2022 Act expires at the end of the period of 5 years beginning with the day on which the 2022 Act came into force. The 2022 Act came into force on 9 September 2022 and the power expires on 8 September 2027.

Section 7(2) of the 2022 Act provides that the Welsh Ministers may by regulations provide that the power under section 1 of the 2022 Act is not to expire on that date (section 7(2)(a)) but is to continue in force for a further period, specified in regulations, ending no later than 30 April 2031 (section 7(2)(b)).

Section 7(5)(a) of the 2022 Act provides that a draft of a statutory instrument containing regulations under section 7(2) of the 2022 Act may not be laid before Senedd Cymru before the conclusions of the review under section 6 of the 2022 Act have been published. Section 6(1) of the 2022 Act provides that the Welsh Ministers must review the operation and effect of the 2022 Act and publish the conclusions of the review before the end of the period of 4 years beginning with the day on which the 2022 Act came into force. The 2022 Act came into force on 9 September 2022 and so the conclusions of the review must be published before 8 September 2026.

The conclusions of the review were published on 13 February 2026.

Section 7(5)(b) of the 2022 Act provides that a draft of a statutory instrument containing regulations under section 7(2) of the 2022 Act may not be approved by a resolution of Senedd Cymru after 8 September 2027.

Regulation 2 of these Regulations provides that the regulation-making power under section 1 of the 2022 Act is not to expire on 8 September 2027 but is to continue in force for a further period beginning with 9 September 2027 and ending with 30 April 2031.

The Welsh Ministers’ Code of Practice on the carrying out of Regulatory Impact Assessments was considered in relation to these Regulations. As a result, a regulatory impact assessment has been prepared as to the likely costs and benefits of complying with these Regulations. A copy can be obtained from the Welsh Government, Cathays Park, Cardiff, CF10 3NQ and is published on www.gov.wales.

(1) 2022 asc 2.