New inquiry on the impact of variations in national and sub-national income tax

Published 23/10/2019   |   Last Updated 13/11/2019

‚ÄčThe National Assembly's Finance Committee has begun a new inquiry which looks at the impact of income tax variations in countries with close borders and the potential impact of differences in income tax rates across the UK.

Since April 2018, Welsh Government has had responsibility for some of the taxes paid in Wales, including the new Welsh Rates of Income Tax (WRIT) that came into force in April 2019.

The terms of reference for the inquiry are:

  • To examine the effects of sub-national income tax variations in international tax systems on the behaviour of low, medium and high income earners, particularly migration and tax avoidance.
  • To understand how low, medium and high income earners may respond to income tax rate divergence for each tax band between Wales and England.
  • To understand the level of divergence in income tax rates that could trigger a behavioural change in low, medium and high income earners in Wales and England.
  • To assess the monetary impact on WRIT revenue with varying levels of tax rate divergence.

Anyone wishing to contribute to the public consultation should first visit the Finance Committee inquiry pages on the National Assembly website.

The consultation is open until 15 January 2020.