WTTG2000 - Definition of a Welsh taxpayer

The Wales Act 2014 inserts new sections 116E to H into the Government of Wales Act (GOWA) 2006 that define who will be a Welsh taxpayer for the purposes of WRIT.

In order for an individual to be a Welsh taxpayer, they must be UK resident for tax purposes – an individual who is not UK tax resident cannot be a Welsh taxpayer.

There are a number of tests to determine Welsh taxpayer status.  If, in the course of a tax year, an individual is UK resident for tax purposes, they will be a Welsh taxpayer, for that tax year, if they satisfy any of three tests:

  1. They are a Welsh parliamentarian
  2. They have a “close connection” to Wales through either:
    1. Having only a single “place of residence”, which is in Wales; or
    2. Where they have more than one “place of residence”, having their “main place of residence” in Wales for at least as much of the tax year as it has been in each other part of the UK
  3. Where no “close connection” to Wales or any other part of the UK exists (either through it not being possible to identify any place of residence or a main residence) – through day counting.

“Place of residence” is clearly key to establishing whether an individual is a Welsh taxpayer.