Welsh Budget 2022/23

The Welsh Government published its draft Budget for 2022/23 in December. Income tax rates remain the same as in England and Northern Ireland. The Welsh Landfill Tax will rise with inflation as per the rest of the UK and no immediate changes were made to the rates and bands of the Land Transaction Tax (“LTT”), the Welsh equivalent of Stamp Duty Land Tax which applies in England and Northern Ireland.

A consultation has been launched on local variation to LTT rates for second homes, short term holiday lets and potentially other additional residential properties. The Welsh Government’s Welsh Tax Policy Report was also published which is the first annual report on progress in the Welsh Government’s tax policy priorities.

The National Audit Office recently published the following reports into devolved income tax:-

• Administration of Scottish rates of income tax 2020-21; and
• Administration of Welsh rates of income tax 2020-21.