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
In light of these new taxation powers, the Finance Committee is conducting an
inquiry into the possible impact of different income tax rates across the
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.