Welsh Government Finance Minister Rebecca Evans announced the draft Welsh Budget for 2022-23 on 21 December 2021.

Income Tax

Welsh Rates of Income Tax (WRIT) were introduced on 6 April 2019, when Income Tax was partially devolved to Wales.

The UK government reduces the basic, higher and additional rates of Income Tax by 10%, for Wales. The Welsh government then decides whether to charge Welsh Taxpayers WRIT at 10%, retaining parity with England, or set a different rate.

  • The WRIT is proposed to remain at 10% for 2022-23, meaning that the basic, higher and additional rates of Income Tax will remain equal to England at 20%, 40% and 45%.

Land Transaction Tax (LTT)

Land Transaction Tax (LTT) was introduced in Wales on 1 April 2018, to replace Stamp Duty Land Tax.

Landfill Disposals Tax (LDT)

  • LDT rates will increase with forecast RPI inflation from 1 April 2022.
    • The standard rate increases to £98.60 per tonne.
    • The lower rate increases to £3.15 per tonne.
    • The unauthorised disposals rate increases to £147.90 per tonne.

Non-domestic Rates (NDR)

  • Retail, leisure and hospitality ratepayers in Wales will receive 50% non-domestic rates relief for the duration of 2022-23 capped at £110,000 per business.
  • The non-domestic rates multiplier in Wales will not increase for 2022-23

Useful guides on this topic

Welsh Income Tax
Since 6 April 2019, Wales has been able to set its own Welsh Rate of Income Tax. 

Who is a Welsh Taxpayer
Who is a Welsh taxpayer? What if I move across the border during the tax year? What about non-UK residents who work in the UK or Wales?

Welsh Land Transaction Tax
What is Land Transaction Tax? How does it operate? What reliefs are available? 

External link

Welsh Government: Draft Budget 2022 to 2023


Small acorn
If you like our content come and join us.

Thousands of accountants and advisers and their clients use www.rossmartin.co.uk as their primary TAX resource.

Register with us now to receive our unique FREE Tax Planning Tips and Advice Guide & our FREE OMB Newsletter.

 

 

Enjoying the Practical Tax content on www.rossmartin.co.uk? 

Sign up now to receive a unique FREE Tax Planning Tips and Advice Guide & our FREE Newsletter.

.Squirrel ad