New Income Tax Rates in Wales Article Image

New Income Tax Rates in Wales

If you live in Wales, HMRC will continue to collect your Income Tax as usual. However, for the first time, a proportion of that Income Tax will be transferred straight to the Welsh Government. It will be spent on public services in Wales.

New rules from April 2019

From the 6th April 2019, Welsh Income Tax Rates are changing. If you live in Wales for longer than anywhere else in the UK within the tax year, then you will need to pay new Income Tax Rates set by the Welsh Government.

This may affect the amount of tax you pay on most taxable income such as wages and pensions, but your Personal Allowance (the earnings you do not pay tax on per year) stays the same as the rest of the UK. Tax on dividends and savings interest will also remain the same as the rest of the UK.

HMRC will add a 'C' to the start of your tax code to ensure the correct rates are being paid, and the tax will be deducted at Welsh rates via PAYE if you are employed, or by your provider, if you are getting a pension. If filling out a self-assessment tax return, there will be a box to tell HMRC you pay the Welsh rates.

If you move to or from Wales within the tax year, the new rates will be backdated to the start of the tax year in which you moved.

If you have more than one home

If you live in Wales, and somewhere in the UK outside of Wales, the UK or Welsh tax rates will depend on your main home. HMRC has detailed information about working out which is your main home, which is usually where you spend most of your time.

Your main home may not be where you spend most of your time if it is where:

  • most of your possessions are
  • your family lives, if you’re married or in a civil partnership
  • you’re registered for things like your bank account, GP or car insurance
  • you’re a member of clubs or societies

At Aspen Waite we offer a full range of Tax Advice, Services and Planning, so please do not hesitate to contact us if you would like help in any area pertaining to tax.


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