Government of Wales Act 2006 (c. 32)

[F1 PART 4A U.K. Taxation]

Textual Amendments

F1 Pt. 4A inserted (17.2.2015) by Wales Act 2014 (c. 29), ss. 6(2), 29(2)(b)(3)

[F2 CHAPTER 2 U.K. Income Tax

Textual Amendments

F2 Pt. 4A Ch. 2 inserted (with effect in accordance with s. 14(3)-(5) of the amending Act) by Wales Act 2014 (c. 29), ss. 8(3), 14(2), 29(4); S.I. 2018/892, art. 3 (with arts. 5, 6, 8)

116D Power to set Welsh rates for Welsh taxpayers U.K.

(1) The [F3 Senedd] may by resolution (a “Welsh rate resolution”) set one or more of the following—

(a) a Welsh rate for the purpose of calculating the Welsh basic rate;

(b) a Welsh rate for the purpose of calculating the Welsh higher rate;

(c) a Welsh rate for the purpose of calculating the Welsh additional rate.

(2) See section 6B of the Income Tax Act 2007 for provision about the calculation of the Welsh basic, higher and additional rates and section 11B of that Act for provision about the income of Welsh taxpayers charged at those rates.

(3) A Welsh rate resolution applies—

(a) for only one tax year, and

(b) for the whole of that year.

(4) Any Welsh rate specified must be a whole number or half a whole number.

(5) A Welsh rate resolution—

(a) must specify the tax year for which it applies,

(b) must be made before the start of that tax year, and

(c) must not be made more than 12 months before the start of that year.

(6) If a Welsh rate resolution is cancelled before the start of the tax year for which it is to apply—

(a) the Income Tax Acts have effect for that year as if the resolution had never been made, and

(b) the resolution may be replaced by another Welsh rate resolution.

(7) The standing orders must provide that only the First Minister or a Welsh Minister appointed under section 48 may move a motion for a Welsh rate resolution.]

Textual Amendments

F3 Words in Act substituted (6.5.2020) by Senedd and Elections (Wales) Act 2020 (anaw 1), s. 42(2), Sch. 1 para. 2(19) (with Sch. 1 para. 2(11)-(14))