Welsh rates of Income Tax approved
04 February 2019
Further to our recent news piece on 29 January, the Welsh Budget has been approved by the National Assembly for Wales.
The vote actually took place on 15 January 2019 but an announcement was not forthcoming through the usual prominent channels. The results of the vote are contained within this transcript of the plenary session.
Full details are within our news piece from 29 January, but in summary the for 2019-20 the rates of Income Tax paid by Welsh taxpayers will continue to be the same as those paid by English and Northern Irish taxpayers.
From 6 April 2019, people with a main residence in Wales and who pay income tax will pay Welsh rates of income tax. From April, the UK government will reduce the three rates of income tax paid by Welsh taxpayers, in line with the system in Scotland. As a result of the basic rate drops from 20% to 10%; the higher rate from 40% to 30%; and the additional rate from 45% to 35%.
The Welsh Government has committed not to increase income tax rates in Wales for the duration of the current Assembly (due to continue until May 2021) so Welsh taxpayers will be paying the same rates as their counterparts’ resident in England and Northern Ireland.