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Tax changes in Wales

From April 2019, the National Assembly for Wales will be able to vary the rates of income tax payable by Welsh taxpayers. Responsibility for many aspects of income tax will remain with the UK government, and the tax will continue to be collected by HMRC for Welsh taxpayers.

You will not need do anything as long as HMRC has your correct address - check and update your address through your personal tax account. Revenue from the Welsh rates of income tax will go to the Welsh Government.

The process for setting Welsh rates of income tax

From April 2019, the UK government will reduce each of the 3 rates of income tax – basic, higher and additional rate – paid by Welsh taxpayers by 10p. The National Assembly for Wales will then decide the 3 Welsh rates of income tax, which will be added to the reduced UK rates. The combination of reduced UK rates plus the Welsh rates will determine the overall rate of income tax paid by Welsh taxpayers.

If the National Assembly sets each of the Welsh rates of income tax at 10p, this will mean the rates of income tax paid by Welsh taxpayers will continue to be the same as that paid by English and Northern Irish taxpayers.

The National Assembly may decide to set different rates to reflect Wales’ unique social and economic circumstances.

The Welsh Government has produced a Frequently Asked Questions document to support queries that you may have.

PACEY will update any relevant factsheets and guidance related to income tax closer to the date of implementation and continue to provide further updates as more information is available.