The Devolved Income Tax Rates (Consequential Amendments) Order, SI 2019/201, makes consequential amendments to aspects of the income tax regime that are not devolved to ensure that Welsh taxpayers obtain certain tax reliefs or are taxed on certain types of income at the Welsh rates.
The order covers areas including:
gift aid for charities, where the UK basic rate will apply, regardless of the tax position of the donor, with Welsh taxpayers able to claim relief for the difference between the UK basic and the highest Welsh rate of tax that applies to them;
pensions tax relief, where no changes are planned to the rates of special pension tax charges based on UK income tax rates;
trusts and personal representatives will continue to be taxed at UK rates where appropriate, with income arising to individual Welsh taxpayers chargeable to the Welsh rates from bare trusts, discretionary trusts, interest in possession trusts and deceased estates, and settlor interested trusts;
foreign entertainers and sportspersons;
remittance basis annual charge;
non-resident landlord scheme;
CIS payments to subcontractors in Wales;
special ‘policyholder’ rate of corporation tax applied to life assurance companies and friendly societies;
REITs and PAIFs; and
payments subject to basic rate withholding tax.
The order came into force on 7 February and has effect for 2019/20 and subsequent tax years. HMRC consulted during October and November 2018 on a draft version of the order and published a technical note at bit.ly/2q6vqrV.
The Devolved Income Tax Rates (Consequential Amendments) Order, SI 2019/201, makes consequential amendments to aspects of the income tax regime that are not devolved to ensure that Welsh taxpayers obtain certain tax reliefs or are taxed on certain types of income at the Welsh rates.
The order covers areas including:
gift aid for charities, where the UK basic rate will apply, regardless of the tax position of the donor, with Welsh taxpayers able to claim relief for the difference between the UK basic and the highest Welsh rate of tax that applies to them;
pensions tax relief, where no changes are planned to the rates of special pension tax charges based on UK income tax rates;
trusts and personal representatives will continue to be taxed at UK rates where appropriate, with income arising to individual Welsh taxpayers chargeable to the Welsh rates from bare trusts, discretionary trusts, interest in possession trusts and deceased estates, and settlor interested trusts;
foreign entertainers and sportspersons;
remittance basis annual charge;
non-resident landlord scheme;
CIS payments to subcontractors in Wales;
special ‘policyholder’ rate of corporation tax applied to life assurance companies and friendly societies;
REITs and PAIFs; and
payments subject to basic rate withholding tax.
The order came into force on 7 February and has effect for 2019/20 and subsequent tax years. HMRC consulted during October and November 2018 on a draft version of the order and published a technical note at bit.ly/2q6vqrV.
