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HMRC internal manual

Welsh Taxpayer Technical Guidance


The Welsh rates of income tax (WRIT), as introduced by the Wales Act 2014, will be charged on the non-savings and non-dividend income of those defined as Welsh taxpayers and will start from 6 April 2019.

The definition of a Welsh taxpayer generally focusses on the question of whether the taxpayer has a “close connection” with Wales or elsewhere in the UK.  The existence of that “close connection” will usually be determined by where an individual has his or her place of residence in the course of a tax year.

Common misconceptions

None of the following factors will cause an individual to be a Welsh taxpayer if their place of residence is outside of Wales:

  • National identity – regarding oneself to be Welsh
  • Location of work – working in Wales
  • Location of income source – receiving a pension or salary from a Welsh entity
  • Travelling in Wales – driving a lorry in, or frequent work visits to, Wales

For the vast majority of individuals, the question of whether or not they are a Welsh taxpayer will be a simple one – they will either live in Wales and thus be a Welsh taxpayer or live elsewhere in the UK and not be a Welsh taxpayer.

Whether or not an individual is a Welsh taxpayer will not, however, be simple in all cases.  This technical material provides guidance on the manner in which HMRC will interpret some of the terms introduced by the Wales Act 2014 that set out the definition of a Welsh taxpayer.