The manifesto from Plaid Cymru seeks greater financial powers for Wales; calling for the devolution of corporation tax, air passenger duty and VAT. Proposals also include an increase to the employee rate of National Insurance for higher and additional tax rate payers, a personal tax credit for individuals who spend more than 30% of their income on rent and utilities, as well as the establishment of special Employment Action Zones with exempt employer National Insurance and enhanced R&D tax credits.
Key proposals include the devolution of corporation tax, air passenger duty and VAT to Wales, maintaining the corporation tax rate at 19% and cutting tourism VAT on hospitality in Wales to 9%.
- Advocate for the reversal of the British Government’s planned cut on corporation tax and maintain the rate at 19%.
- Cut tourism VAT on hospitality to 9%.
- Devolution of corporation tax to Wales, as is the case in Northern Ireland.
- Devolution of Air Passenger Duty to Wales, as is the case in Scotland and Northern Ireland.
- VAT revenues assigned to Wales, as is the case in Scotland.
- Establish Employment Action Zones in rural and industrial areas with high unemployment where a special exemption for employer National Insurance and enhanced tax credits for R&D will be offered.
- Explore how the tax system can be used to promote public health, for example through introducing a minimum price per unit of alcohol, and through imposing additional taxation on other potentially harmful products.
- Use of planning laws, levies and tax-making powers to ensure a zero waste Wales and to ban single use plastics.
- Designate town centres across Wales as Opportunity Zones with tax relief and capital investment to turn them into engines of localised green development.
The key proposals are an increase in the employee rate of National Insurance for higher and additional rate taxpayers and restricting the amount of income tax relief for pension contributions to 20%.
- Increase the employee rate of National Insurance Contributions for higher rate and additional rate taxpayers from 2% to 4%.
- Introduce a new tax credit of up to £25 a week for people in Wales who pay more than 30% of their income on rent and utilities.
- Advocate for income tax relief on pension contributions to be restricted to the standard rate of 20%.
By necessity, this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. This briefing does not constitute advice nor a recommendation relating to the acquisition or disposal of investments. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication. Details correct at time of writing.
This article was previously published on Smith & Williamson prior to the launch of Evelyn Partners.