WTTG4100 - Overview

The Wales Act 2014 sets out a number of tests to determine whether an individual is a Welsh taxpayer.

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.

An individual will be a Welsh taxpayer if they satisfy any of the following 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.

“Part of the UK” is to be interpreted as Wales, England, Scotland and Northern Ireland but not Isle of Man or the Channel Islands. 

If an individual is identified as being a Welsh taxpayer that status applies for a whole tax year – it is not possible to be a Welsh taxpayer for part of a tax year.

However, it should be noted that in a year that the individual becomes or ceases to be UK tax resident, the extent to which income in that tax year is subject to income tax at Welsh rates remains subject to ‘split year’ treatment under the statutory residence test.