Income tax powers for Wales agreed

23 December 2016

From April 2019 Wales will take on income tax powers.

In a milestone agreement between the UK and Welsh governments, Wales will take control of 10p in each band of income tax collected within its borders.

The block grant that Wales receives from the Treasury on an annual basis will be reduced accordingly.

The new fiscal framework was negotiated by Chief Secretary to the Treasury, David Gauke and Welsh Finance Minister, Mark Drakeford,

Two Tax Bills were also introduced   in July 2016 to establish the two taxes to be devolved to Wales in April 2018; a land transaction tax, which will replace the current stamp duty land tax (SDLT), and a landfill disposals tax for Wales, which will replace the current landfill tax.

The Tax Collection and Management Act was passed by the National Assembly in April 2016 which provides the Welsh Government with the powers to collect and manage their own taxes. The Welsh Revenue Authority is being established to do this and will be operational by 2018.

 

 

 

 

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