Agreeing Welsh Taxes

Published 19/11/2020   |   Last Updated 09/03/2021   |   Reading Time minutes

The Senedd, along with the Welsh Government, is responsible for some of the taxes set in Wales.

It is our role to check and approve the work of the Welsh Government in relation to setting tax rates and introducing new taxes.

Welsh Taxes

In Wales, there are some taxes you will pay that are different to those in the rest of the UK.

There are:

  • Welsh rates of income tax
  • Land Transaction Tax (replacing Stamp Duty Land Tax)
  • Landfills Disposal Tax (replacing Landfill Tax)

The Welsh Government can make changes to these taxes provided it is approved by Members of the Senedd.

Welsh Government are also able to introduce new Welsh taxes, with permission and agreement from the Senedd and UK Parliament.


The Wales Act 2014 and 2017

The introduction of two new Acts meant that the Senedd received new powers over taxes in Wales.

These new powers begun from April 2018, while powers over Welsh income tax were introduced in April 2019.

These new powers can change the rate of tax you pay in Wales, and could be more, less or the same as the rest of the UK.


How tax is spent in Wales

The Welsh Government decides how your taxes are spent in Wales. Every year, a draft budget is presented to the Senedd for scrutiny,

The Senedd’s Committees then look closely at the Welsh Government’s draft budget and propose changes to where money could be spent.

Once a Final Budget has been agreed, it will be brought before the Senedd to debate and vote on ready for the year ahead.


Examining Welsh Government Borrowing

The Welsh Government can borrow money to fund spending in Wales and the Senedd looks closely at the amount they are borrowing and how much it costs to finance this.


Want to learn more about fiscal devolution?

Discover more about how the Welsh budget is funded and how taxes are approved in Wales.

Learn more about fiscal devolution