Welsh Rates of Income Tax (WRIT) ( cy, Cyfradd Treth Incwm Cymru (CTIC)) is part of the UK income tax system and from 6 April 2019 a proportion of income tax paid b
taxpayers living in Wales
is transferred straight to the Welsh Government to fund Welsh public services. It is administered by

HM Revenue and Customs HM Revenue and Customs (His Majesty's Revenue and Customs, or HMRC) is a non-ministerial government department, non-ministerial Departments of the United Kingdom Government, department of the His Majesty's Government, UK Government responsible fo ...

(HMRC), but it is not a devolved tax comparable to

Scottish income tax Income tax in Scotland is a tax of personal income gained through employment. This is a tax controlled by the Scottish Parliament, and collected by the UK government agency HM Revenue & Customs. Since 2017, the Scottish Parliament has had the ...

History

The Wales Act 2014, which received

Royal Assent Royal assent is the method by which a monarch formally approves an act of the legislature, either directly or through an official acting on the monarch's behalf. In some jurisdictions, royal assent is equivalent to promulgation, while in oth ...

on 17 December 2014, gave the National Assembly for Wales the power to set a Welsh basic, higher and additional rate of income tax to be charged on people living in Wales. From 6 April 2019 the UK government reduced the three rates of UK income tax (basic, higher and additional) paid by people in Wales 10p. The

Welsh Government The Welsh Government ( cy, Llywodraeth Cymru) is the Welsh devolution, devolved government of Wales. The government consists of ministers and Minister (government), deputy ministers, and also of a Counsel General for Wales, counsel general. Minist ...

decided the WRIT on the Welsh three rates, which added to the reduced UK rates. The Welsh Parliament can set Welsh rates anything from zero to any number in the pound. These Welsh rates are then added to each of the UK income tax rates after 10p in the pound has been deducted from each rate. The reduction in the three rates of income tax by the UK government reduced the amount of tax paid to

HM Treasury His Majesty's Treasury (HM Treasury), occasionally referred to as the Exchequer, or more informally the Treasury, is a Departments of the Government of the United Kingdom, department of Government of the United Kingdom, His Majesty's Government ...

. If the Welsh rates of income tax are set at less than 10p, the

UK Government ga, Rialtas a Shoilse gd, Riaghaltas a Mhòrachd , image = HM Government logo.svg , image_size = 220px , image2 = Royal Coat of Arms of the United Kingdom (HM Government).svg , image_size2 = 180px , caption = Royal Arms , date_est ...

will recover the money it does not collect from Wales by reducing Wales'

block grant A block grant is a grant-in-aid of a specified amount from a larger government to a smaller regional government body. Block grants have less oversight from the larger government and provide flexibility to each subsidiary government body in term ...

. WRIT rates for the 2019–20 year have been left at 10p, so income tax in Wales will be the same as those in

England England is a country that is part of the United Kingdom. It shares land borders with Wales to its west and Scotland to its north. The Irish Sea lies northwest and the Celtic Sea to the southwest. It is separated from continental Europe ...

. The Welsh Revenue Authority collects and manages Land Transaction Tax and Landfill Disposals Tax in Wales since 2018; WRIT continues to be collected by HMRC from Welsh taxpayers as one payment and then transfers WRIT receipts to the Welsh Government. The block grant was reduced as a result.

WRIT tax rates

The rates in the table are those rates imposed by the Welsh Government. They exclude the standard UK

personal allowance In the UK tax system, personal allowance is the threshold above which income tax is levied on an individual's income. A person who receives less than their own personal allowance in taxable income (such as earnings and some benefits) in a give ...

and the reduced income tax rates which are collected by the UK Government. Those earning more than £100,000 have a reduced personal allowance.

References

{{Reflist

External links

Welsh Government's WRIT official website
Taxation in Wales