Welsh Budget 2022-23: Summary

Welsh Government Finance Minister Rebecca Evans announced the draft Welsh Budget for 2022-23 on 21 December 2021.

Income Tax

Welsh Rates of Income Tax (WRIT) were introduced on 6 April 2019, when Income Tax was partially devolved to Wales.

The UK government reduces the basic, higher and additional rates of Income Tax by 10%, for Wales. The Welsh government then decides whether to charge Welsh Taxpayers WRIT at 10%, retaining parity with England, or set a different rate.

• The WRIT is proposed to remain at 10% for 2022-23, meaning that the basic, higher and additional rates of Income Tax will remain equal to England at 20%, 40% and 45%.

Land Transaction Tax (LTT)

Land Transaction Tax (LTT) was introduced in Wales on 1 April 2018, to replace Stamp Duty Land Tax.

• No changes to LTT rates or thresholds are proposed for 2022-23.
• An LTT consultation has been launched seeking views on the local variation of LTT rates for purchases of second homes, holiday lets or additional residential properties.

Landfill Disposals Tax (LDT)

• LDT rates will increase with forecast RPI inflation from 1 April 2022.
  • The standard rate increases to £98.60 per tonne.
  • The lower rate increases to £3.15 per tonne.
  • The unauthorised disposals rate increases to £147.90 per tonne.

Non-domestic Rates (NDR)

• Retail, leisure and hospitality ratepayers in Wales will receive 50% non-domestic rates relief for the duration of 2022-23 capped at £110,000 per business.
• The non-domestic rates multiplier in Wales will not increase for 2022-23

Useful guides on this topic

Welsh Income Tax
Since 6 April 2019, Wales has been able to set its own Welsh Rate of Income Tax. 

Who is a Welsh Taxpayer
Who is a Welsh taxpayer? What if I move across the border during the tax year? What about non-UK residents who work in the UK or Wales?

Welsh Land Transaction Tax
What is Land Transaction Tax? How does it operate? What reliefs are available? 

External link

Welsh Government: Draft Budget 2022 to 2023