How does the mini-budget affect Wales and Scotland? What are the devolved nation’s responses to it?
Wales
Income Taxes
The Welsh Government has announced its intention to review forthcoming Income Tax rates as part of their Budget which is expected in December.
- The reduction in the basic rate band announced in the mini-budget will not currently affect Welsh taxpayers.
- The Finance Minister for the Welsh Government has confirmed that as the additional rate of tax has been scrapped, the Welsh Government cannot alter or reinstate it.[These proposals were reversed on 17 October and 3 October 2022]. See Fiscal Statement October 2022: At a glance
Land Transaction Tax (LTT)
On 27 September 2022, the Welsh Government announced that the main residential rate and bandings for LTT are to change from 10 October 2022.
The updated rates from 10 October are as follows:
|
Band: market price |
Tax Rate |
|
£0- £225,000 |
0 % |
|
£225,000- £400,000 |
6% |
|
£400,000- £750,000 |
7.5 % |
|
£750,000- £1.5 million |
10 % |
|
£1.5million and over |
12 % |
See Welsh LTT rates
Scotland
The Scottish Government has announced that they are considering the implications of the mini-budget and will report back in the week commencing 24 October.
Income Tax
- The reduction in the basic rate of Income Tax announced in the mini-budget will not currently affect Scottish taxpayers in receipt of non-savings and non-dividend income.
- Scotland retains the Additional Rate of tax for non-savings and non-dividend income.
- The Income Tax rates applying to savings and dividend income will benefit from the reductions announced in the mini-Budget. [These proposals were reversed on 17 October and 3 October 2022]. See Fiscal Statement October 2022: At a glance
See Mini-budget 2022: Income Tax reduced
Useful guides on this topic
Wales
This section covers taxes devolved to Wales.
Scotland
The guides and checklists in this section of the Practical Tax Database cover Scottish Tax. This section of the site is developing as the new legislation develops.
Mini-budget 2022: At a glance
The Chancellor, Kwasi Kwarteng, has presented his mini-budget and 'The Growth Plan 2022' announcing major reversals to a large chunk of his predecessor's tax policies. Together with a package of tax cuts, these will greatly benefit owner-managed businesses.
External links
Homebuyers to benefit from new tax rules (Wales)
Emergency Budget Review (Scotland)
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