Income Tax Act 2007 section 11B

Income charged at the Welsh basic, higher and additional rates

Section 11B sets out how income tax is charged on the non-savings income of Welsh taxpayers, replacing the standard UK basic, higher and additional rates with corresponding Welsh rates.

• Welsh taxpayers pay Welsh rates of income tax (basic, higher and additional) on their non-savings income instead of the standard UK rates.
• Non-savings income means any income that is not savings income — so primarily employment income, self-employment profits, pension income and rental income.
• The Welsh rate that applies depends on which UK rate band the income would otherwise fall into — basic rate income is charged at the Welsh basic rate, higher rate income at the Welsh higher rate, and additional rate income at the Welsh additional rate.
• These Welsh rates are subject to overriding rules for dividend income and any other Income Tax Act provisions that charge income at different rates in specific circumstances.