Wales controls some taxes fully, has partial control over Income Tax rates, and leaves most other UK taxes reserved to Westminster. This guide gives a clear overview of what is devolved, what isn't, and how it compares with Scotland's broader devolution settlement.
Fully Devolved Welsh Taxes
Wales has full control over two taxes, both administered by the Welsh Revenue Authority: Land Transaction Tax (LTT), which replaced Stamp Duty Land Tax for Welsh property from April 2018, and Landfill Disposals Tax (LDT), which replaced UK Landfill Tax for waste disposed of in Wales from the same date. Council Tax is also a long-standing devolved, locally administered Welsh tax with its own bands, discounts and premiums.
Welsh Rates of Income Tax
Since April 2019, the Welsh Government has had the power to vary the basic, higher and additional rates of Income Tax paid by Welsh taxpayers by up to 10 pence in the pound each, under the Welsh Rates of Income Tax (WRIT). HMRC continues to collect this tax through PAYE and Self Assessment using "C" prefixed tax codes for Welsh taxpayers, then transfers the relevant share of revenue to the Welsh Government. As of 2026/27, the Welsh Government has kept rates aligned with England and Northern Ireland rather than using the full extent of this power.
Reserved (Non-Devolved) Taxes
National Insurance, VAT, Corporation Tax, Capital Gains Tax, Inheritance Tax, dividend tax and most other major UK taxes remain reserved to the UK Parliament at Westminster and apply identically across Wales, England and Northern Ireland (Scotland has its own separate Income Tax bands and property/ landfill tax devolution but shares the same reserved taxes for everything else).
Comparison With Scotland
Scotland's devolution settlement goes further than Wales's: the Scottish Parliament sets its own Income Tax bands and rates entirely (not just a rate-varying power), and Scotland has its own property transaction tax (LBTT) and landfill tax alongside a wider range of smaller devolved taxes. Wales's settlement, while significant, remains narrower in scope as of 2026/27.
Frequently Asked Questions
Which taxes are fully devolved to Wales?
Wales has full control over Land Transaction Tax (LTT, replacing SDLT for Welsh property since April 2018) and Landfill Disposals Tax (LDT, replacing UK Landfill Tax for waste in Wales since the same date), both set by the Welsh Government and administered by the Welsh Revenue Authority.
Is Income Tax devolved to Wales?
Partially. Since April 2019, the Welsh Government can vary the Welsh Rates of Income Tax (WRIT) by adjusting the basic, higher and additional rates by up to 10 pence in the pound each, though as of 2026/27 the Welsh Government has kept rates aligned with the rest of England and Northern Ireland rather than diverging.
How is Welsh Income Tax collected if it is devolved?
HMRC continues to collect Income Tax through PAYE and Self Assessment for Welsh taxpayers, using tax codes with a "C" prefix to identify them, and then transfers the relevant proportion of revenue to the Welsh Government based on the WRIT rates set for that year.
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Which taxes are NOT devolved to Wales?
National Insurance, VAT, Corporation Tax, Capital Gains Tax, Inheritance Tax, dividend tax and most other UK-wide taxes remain reserved to Westminster and apply identically in Wales as in England, Scotland and Northern Ireland (subject to Scotland's separate Income Tax and property/landfill tax devolution).
Is Council Tax devolved to Wales?
Yes -- Council Tax has long been a devolved and locally administered tax in Wales, with its own banding system, discounts and premiums (including higher premiums on second homes and long-term empty properties) set separately from the equivalent English system.
Why hasn't Wales used its Income Tax varying power?
The Welsh Government has chosen, so far, to keep Welsh Income Tax rates matched to the rest of England and Northern Ireland, reasoning that diverging rates could affect cross-border behaviour near England, though the power remains available for a future Welsh Budget to use if policy priorities change.
How does Welsh tax devolution compare with Scotland's?
Scotland has more extensive devolved tax powers, including full control over Income Tax bands and rates (not just a rate-varying power), its own property transaction tax (LBTT) and landfill tax, plus some smaller devolved taxes, whereas Wales's devolution is currently narrower, covering LTT, LDT and a more limited Income Tax rate-varying power.
Could more taxes be devolved to Wales in future?
Yes -- the scope of devolved taxation can change through UK Parliament legislation and intergovernmental agreements, so it is worth checking current Welsh Government and Welsh Revenue Authority guidance periodically rather than assuming today's devolution settlement is permanent.
Disclaimer: This guide reflects the Welsh tax devolution settlement as it stands for 2026/27. This guide is for general information only and is not professional advice. Refer to gov.wales for current official guidance before relying on any treatment.
