Welsh draft Budget for 2022-23 published

In its draft Budget for 2022-23 the Welsh government confirmed that the Welsh rate of income tax is to be kept at 10p. It also published a consultation on land transaction tax and second homes.

Lakshmi Narain chair of the Chartered Institute of Taxation’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.

“This change will also affect people who do not earn enough to pay Welsh income tax because the level of income where National Insurance starts to be charged in 2022-23 is expected to be set at £190 a week or £9 880 a year below the annual tax-free personal income tax allowance...