CIOT and LITRG comment on Welsh rates of income tax draft legislation
Released 6 November 2018
The Chartered Institute of Taxation (CIOT) and Low Incomes Tax Reform Group (LITRG) have published comments on the Welsh rates of income tax draft legislation.
On 22 October 2018, HMRC published a consultation Clarifying the scope of the Welsh rates of Income Tax – technical note and draft legislation inviting views on the draft legislation needed to introduce separate rates of income tax in Wales. The CIOT and LITRG joint response emphasises the need for comprehensive guidance so that taxpayers can understand their tax position and whether or not they are Welsh taxpayers. The bodies also express concern about the lack of awareness of which tax authority is responsible for the WRIT and consider it essential that the publicity surrounding the WRIT makes it abundantly clear that the WRIT will be administered and collected by HMRC. The submission also comments on pensions tax relief and ensuring correct relief at source claims are made for Welsh taxpayers, trusts and other income tax issues, such as the interaction with tax credits and benefits. The bodies also look at issues for real estate investment trusts and property authorised investment funds and PAYE amendments.