The Welsh Government released their Draft Budget 2023 to 2024 on 13 December 2022.

The Draft Budget signals the Welsh Government’s intentions as follows:

Income Tax

  • The Welsh Income Tax rate will remain at 10% which will retain parity between rates of Income Tax in Wales and England for the 2023/24 tax year.
  • These currently remain the same as the rest of the UK, excluding Scotland.

        Income band £

    Rate

    Tax rate

    %

    2023-24

    (proposed)

    2021-22

    &

    2022-23

    Personal allowance (tax-free band) *           

     0  

    0-12,570 0-12,570

    Basic rate*

    20

    12,570-50,270 12,570-50,270

    Higher rate*

    40

    50,270-125,140 50,270-150,000

    Additional rate**

    45

    125,140+ 150,000+

    * Autumn Finance Bill 2022 includes proposals to freeze the personal allowance, basic and higher rate bands to 5 April 2028.

    **It is proposed that this is reduced to £125,140 from April 2023. 

    See: Welsh Income Tax Rates

Land Transaction Tax (LTT)

  • There will be no further changes to Land Transaction Tax LTT rates or bands. The changes introduced on 10 October 2022 remain as follows:
  • Residential property transactions from 10 October 2022:

  • Band: market price

    Tax Rate

    £0- £225,000

    0 %

    £225,000- £400,000

    6%

    £400,000- £750,000

    7.5 %

    £750,000- £1.5 million

    10 %

    £1.5million and over

    12 %

  • Non-residential property transactions from 22 December 2020

    Band: market price

    Tax Rate

    £0- £225,000

    0%

    £225,000- £250,000

    1%

    £250,000- £1 million

    5%

    £1 million and over

    6%

     

  • See: Welsh LTT Rates

Landfill Disposal Tax (LDT)

  • Landfills Disposals Tax (LDT) increases in line with the Retail Price Index measure of inflation from 1 April 2023.

These proposals will be put to the Senedd and the final Budget will be published on 7 March 2023.

Useful guides on this topic

Wales
This section covers taxes devolved to Wales.

Welsh Income Tax Rates
What is the Welsh rate of Income Tax? What rate is Welsh Tax? 

Welsh LTT Rates
What are Welsh Land Transaction Tax (LTT) Rates? How do you calculate Welsh Land Transaction Tax?

External links

Draft Budget 2023 to 2024


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