Glossary · UK
What is Welsh Rates of Income Tax (WRIT)?
The Welsh Rates of Income Tax let the Senedd set the rate added to a reduced UK rate on non-savings income for Welsh taxpayers.
Full Definition
The Welsh Rates of Income Tax (WRIT) apply to non-savings, non-dividend income (such as salaries, pensions and rental profits) of people whose main home is in Wales. Under WRIT, the UK government reduces each of the three main income tax rates by 10 pence in the pound, and the Senedd then sets a Welsh rate to add back. For 2026/27 the Senedd has continued to match the rates in England and Northern Ireland, so the combined rates stay at basic 20%, higher 40% and additional 45%. This means a Welsh taxpayer's bill is currently identical to an equivalent taxpayer in England, but the Senedd has the power to diverge in future. The same UK Personal Allowance of £12,570 applies, tapering by £1 for every £2 of income above £100,000. The £50,270 basic-rate limit and £125,140 additional-rate threshold also apply. WRIT only covers earned and property income; savings interest and dividends remain taxed under UK-wide rules and rates. By contrast, Scotland operates a fully separate system with its own bands, while Northern Ireland follows the England and Wales structure. HMRC collects WRIT through the C prefix on your tax code.