The Welsh Rates of Income Tax draft budget 2023-24 has been released. Rebecca Evans MS has said in her written statement,
“In line with its commitment not to take more in Welsh Rates of Income Tax from Welsh families for at least as long as the economic impact of COVID 19 lasts, the Welsh Government proposes to set Welsh Rates of Income Tax for 2023-24 at 10p for the three income tax rates (basic, higher and additional).”
The way income tax works in Wales is by the UK government reducing the three income tax rates for Welsh taxpayers by 10p. This then allows the Welsh Government to decide whether they set the rates at 10p. As the Welsh Government has decided to set the rates at 10p for 2023/24 this retains parity between English and Welsh taxpayers.