The Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2018

Amendment of the Income Tax (Pay As You Earn) Regulations 2003

3.  In regulation 2(1) (interpretation)—

(a) in the definition of “additional rate”(1) after “ITA”(2) insert “, except where the employee is a Welsh taxpayer where it means the Welsh additional rate of income tax calculated under section 6B of that Act”(3),

(b) in the definition of “basic rate”, after “except where” insert “—”, and for the remainder of the definition commencing with “the employee”, substitute—

“(a) the employee is a Scottish taxpayer where it means the Scottish basic rate of income tax set by a Scottish rate resolution of the Scottish Parliament under section 80C of the Scotland Act 1998, or

(b) the employee is a Welsh taxpayer where it means the Welsh basic rate of income tax calculated under section 6B of ITA”,

(c) in the definition of “higher rate” after “ITA” insert “, except where the employee is a Welsh taxpayer where it means the Welsh higher rate of income tax determined under section 6B of that Act”; and

(d) after the definition of “United Kingdom continental shelf” insert—

““Welsh rate” means a rate set by the National Assembly for Wales for the tax year under section 116D of the Government of Wales Act 2006 (income tax)(4);

“Welsh taxpayer” has the same meaning as in section 116E of the Government of Wales Act 2006 (Welsh taxpayers).”.

(1)

The definition of additional rate was inserted into the principal Regulations by regulation 3 of S.I. 2011/729.

(2)

The term “ITA” and the definition of that term as the Income Tax Act 2007 (c. 3) was inserted into regulation 2 of the principal Regulations by regulation 3 of S.I. 2008/782.

(3)

Section 6B was inserted into the Income Tax Act 2007 by section 9(3) of the Wales Act 2014 (c. 29) with effect in relation to the tax year 2019-20 and subsequent tax years by virtue of S.I. 2018/892 made under section 14(2) of that Act.

(4)

2006 c. 32. Sections 116D and E were inserted into the Government of Wales Act 2006 by section 8(3) of the Wales Act 2014.