From 06th April 2019, the Welsh Government (like the Scottish Government) will be able to set and vary the rate of Income Tax paid by taxpayers who live in Wales.
As in Scotland, the system will be administered by HMRC. This means that not only will the tax be collected by HMRC (then paid over to the Welsh Government), HMRC are also responsible for determining who is a Welsh taxpayer; therefore it is more important than ever to keep HMRC informed of any changes in your home address.
These amendments will affect the 2019/20 tax year onwards and will apply to income from sources such as employment, self-employment, pension and rental income. PAYE taxpayers who are resident in Wales will be given a new identifier in their tax code (C- Cymru) to ensure the correct amount of tax is deducted.
As for the new rates, the current basic, higher and additional rate tax bands (20%, 40% and 45%) will be reduced by 10% and replaced with a rate to be decided by the Welsh Government later this year.