HMRC is consulting until 5 November on a technical note and two draft statutory instruments setting out UK government policy on exceptions to the general rule that Welsh rates of income tax will always apply to the non-savings income of Welsh taxpayers.
The draft Devolved Income Tax Rates (Consequential Amendment) Order 2018 sets out the position for areas including:
gift aid for charities, where the UK basic rate will apply, regardless of the tax position of the donor, with Welsh taxpayers able to claim relief for the difference between the UK basic and the highest Welsh rate of tax that applies to them;
pensions tax relief, where no changes are planned to the rates of special pension tax charges based on UK income tax rates;
trusts and personal representatives will continue to be taxed at UK rates where appropriate, with income arising to individual Welsh taxpayers chargeable to the Welsh rates from bare trusts, discretionary trusts, interest in possession trusts and deceased estates, and settlor interested trusts;
foreign entertainers and sportspersons;
remittance basis annual charge;
non-resident landlord scheme;
CIS payments to subcontractors in Wales;
special ‘policyholder’ rate of corporation tax applied to life assurance companies and friendly societies;
REITs and PAIFs; and
payments subject to basic rate withholding tax.
The draft Income Tax (Pay As You Earn) (Amendment No 2) Regulations 2018 make necessary amendments in relation to the operation of PAYE.
HMRC is consulting until 5 November on a technical note and two draft statutory instruments setting out UK government policy on exceptions to the general rule that Welsh rates of income tax will always apply to the non-savings income of Welsh taxpayers.
The draft Devolved Income Tax Rates (Consequential Amendment) Order 2018 sets out the position for areas including:
gift aid for charities, where the UK basic rate will apply, regardless of the tax position of the donor, with Welsh taxpayers able to claim relief for the difference between the UK basic and the highest Welsh rate of tax that applies to them;
pensions tax relief, where no changes are planned to the rates of special pension tax charges based on UK income tax rates;
trusts and personal representatives will continue to be taxed at UK rates where appropriate, with income arising to individual Welsh taxpayers chargeable to the Welsh rates from bare trusts, discretionary trusts, interest in possession trusts and deceased estates, and settlor interested trusts;
foreign entertainers and sportspersons;
remittance basis annual charge;
non-resident landlord scheme;
CIS payments to subcontractors in Wales;
special ‘policyholder’ rate of corporation tax applied to life assurance companies and friendly societies;
REITs and PAIFs; and
payments subject to basic rate withholding tax.
The draft Income Tax (Pay As You Earn) (Amendment No 2) Regulations 2018 make necessary amendments in relation to the operation of PAYE.
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