When will Welsh rates of income tax start?
Income taxes will be devolved to the Welsh government on 6 April 2019, meaning that people who live in Wales may have different income tax rates to the rest of the UK.
Currently, income tax rates set by the UK government in Westminster are paid by those in England, Northern Ireland and Wales.
The Scottish government began setting its own rates of income tax in the 2017/18 tax year. Our guide to income tax in Scotland explains how their system works.
- Get a head start on your 2017-18 tax return with the Which? tax calculator. Tot up your tax bill, get tips on where to save and submit your return direct to HMRC with Which?.
How will Welsh income tax work?
As far as the process of paying income tax, little will change. HMRC will continue to collect income tax as before.
The difference is that some of the tax will go straight to the Welsh government, while the rest will go to the UK government.
From 6 April 2019, the UK government will reduce the basic, higher and additional rates of income tax by 10p for Welsh taxpayers - this amount will continue to go to Westminster.
The Welsh government can then set rates for any additional payments, which it will then receive directly.
In the draft Welsh Budget, there was a proposal to set the first Welsh rates of income tax at 10p. If that were the case, then the rates of income tax paid by those in Wales will remain the same as those paid by taxpayers in England and Northern Ireland.
This proposal will be confirmed by the National Assembly prior to the final Budget being published on 18 December.
Find out more: income tax rates and allowances
What other taxes are different in Wales?
Aside from income tax, the Welsh government has also set it's own rates of stamp duty - known as Land Transaction Tax.
You can find out how much you'll pay, and use our stamp duty calculator, in our guide to Land Transaction Tax.