The Welsh Assembly has now agreed that income tax rates for Welsh taxpayers will not be changed for 2019/20.
From April 2019, Welsh taxpayers will be issued with new tax codes beginning with C for Cymru. The UK government will reduce the 3 bands of income tax by 10% each for Welsh taxpayers, with the rates approved by the Welsh Government being added to this. The revenue raised from the Welsh rates of tax will go to the Welsh Government.
Following a debate and subsequent vote on 15th January 2019, it was decided the Welsh rates will be 10% across the board, meaning that as far as taxpayers are concerned, there will be no changes to the tax they pay.
The decision was welcomed by many as it was feared any increase or decrease to the tax rates could negatively affect businesses in Wales. It also goes some way to highlighting the challenge facing the Welsh Government in trying to balance their desire to use their new powers to invest in public services with the need to protect the country’s revenue base.
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.