The full Welsh budget for 2020/21 has been fully approved by the Welsh Assembly and has confirmed there will be no change in Welsh income tax under the Welsh Rate of Income Tax (WRIT) powers which commence in April 2019. As a result of this ratification, the actual Welsh Rates of Income Tax are:
Welsh rate for the basic rate of income tax is 10p
Welsh rate for the higher rate of income tax is 10p
Welsh rate for the additional rate of income tax is 10p
This therefore confirms that Welsh resident employees continue to pay the same rate of income tax based on the same thresholds announced for England and Wales and further confirmed in the last week in HMRC’s Rates and Thresholds.
The expectation going forward was originally no change would be seen during the current Welsh Assembly which will be in place until May 21 however further change in 2021/22 cannot be ruled out.
