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Welsh Budget 2022/23

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The Welsh government delivered its 2022/23 Budget on 20 December 2021. The key tax announcements include:

  • the Welsh rate of income tax is set at 10% for 2022/23, which maintains current levels and means that Welsh taxpayers are subject to exactly the same rates as taxpayers in the rest of the UK (outside Scotland);
  • the Welsh landfill tax standard and lower rates will increase to £98.60 per tonne and £3.15 per tonne respectively from 1 April 2022. The unauthorised disposals rate will be increased to £147.90 (see SI 2021/1470);
  • the land transaction tax (LTT) rates currently in force remain unchanged, and the government is consulting on potential local variation of LTT rates for purchases of second homes and holiday lets.

Lakshmi Narain, chair of the CIOT’s Welsh Technical Committee, said: ‘Although the Welsh rate of income tax will remain at 10p, most Welsh taxpayers on a given salary will see their take home pay fall because of the UK government’s decision to increase national insurance by 1.25 percentage points from next April.’

Narain added: ‘Consulting on reforms to LTT aimed at tackling the proliferation of second homes in some areas will be welcome, but tax is only one of the policy levers available to ministers to address the changes that have taken place in the housing market over the last 50 years and needs to be considered alongside wider policy choices. Recent experiences with plans to introduce a vacant land tax have highlighted these challenges, and it is hard to dispute Welsh ministers’ claims that the process for devolving new tax powers to Wales is not working and in need of reform.’

Issue: 1558
Categories: News