Wales bill could enable Welsh Income Tax Rate

It was announced on 19th December that Welsh Ministers might be able to take part ownership of income tax from 2019 and so be able to vary the rates. Ministers had previously been reluctant to accept these powers, as they feared finding for Wales might be cut. The agreed funding bill means that Wales will be neither better nor worse off following the transfer of powers in 2019.

The ability to vary the rate of income tax in Scotland has been on the statute books for some years however the powers were only transferred recently and for the first time this year the ‘S’ income tax code has been introduced for those identified as Scottish Rate of Income Tax payers. We suppose that there will now be a ‘W’ tax code for those who will be Welsh Rate of Income Tax payers. No doubt there will be more information during next year.