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.
- No changes to LTT rates or thresholds are proposed for 2022-23.
- An LTT consultation has been launched seeking views on the local variation of LTT rates for purchases of second homes, holiday lets or additional residential properties.
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
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