Commentary

E1.102F Income tax in Wales

Personal and employment tax

E1.102F Income tax in Wales

Welsh income tax

E1.102F Income tax in Wales

In 2011, the UK Government established the Silk Commission to look at the future of the devolution settlement in Wales, with a remit to examine both the financial and legislative powers. For full details of the recommendations of the Silk Commission, see A1.540.

The Silk Commission recommended that income tax be partially devolved to the Welsh Government in relation to the rates of tax that are applied to non-savings non-dividend income (known in practice as 'non-savings income') of Welsh taxpayers. The UK Government agreed and introduced the framework for the Welsh rates of income tax (also known as WRIT) in Wales Act 2014, but this did not come into force straightaway. Originally, there was to be a referendum in Wales to decide whether to introduce the Welsh rates of income tax, but this requirement was dropped following Autumn Statement 2016.

The fiscal framework agreement signed in December 2016 confirmed that the UK Government would support the introduction of the Welsh rates of income tax from the 2019/20 tax year onwards.

The commentary below discusses the Welsh rates of income tax and the income to which they apply. For the definition of a Welsh taxpayer, see E1.102G.

Welsh rates of income tax

From the 2019/20 tax year onwards, the Welsh Government has the power to set Welsh rates of income tax1.

Like the Scottish Government, the Welsh Government does not have the power to set the level of the personal allowance, set different rates for different types of

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