The Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2018

• Citation: S.I. 2018/1327
• Sections: 5

Section 1 Citation, commencement and effect

(1) These Regulations may be cited as the Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2018 and come into force on 1st January 2019.

(2) The amendments made by these Regulations have effect for the tax year 2019-20 and subsequent tax years.

Section 2 Amendment of the Income Tax (Pay As You Earn) Regulations 2003

The Income Tax (Pay As You Earn) Regulations 2003 are amended as follows.

Section 3 Amendment of the Income Tax (Pay As You Earn) Regulations 2003

In regulation 2(1) (interpretation)—

(a) in the definition of “additional rate” after “ITA” insert “, except where the employee is a Welsh taxpayer where it means the Welsh additional rate of income tax calculated under section 6B of that Act” ,

(b) in the definition of “basic rate”, after “except where” insert “—”, and for the remainder of the definition commencing with “the employee”, substitute—

(a) the employee is a Scottish taxpayer where it means the Scottish basic rate of income tax set by a Scottish rate resolution of the Scottish Parliament under section 80C of the Scotland Act 1998, or

(b) the employee is a Welsh taxpayer where it means the Welsh basic rate of income tax calculated under section 6B of ITA

(c) in the definition of “higher rate” after “ITA” insert “, except where the employee is a Welsh taxpayer where it means the Welsh higher rate of income tax determined under section 6B of that Act”; and

(d) after the definition of “United Kingdom continental shelf” insert—

“Welsh rate” means a rate set by the National Assembly for Wales for the tax year under section 116D of the Government of Wales Act 2006 (income tax) ;

“Welsh taxpayer” has the same meaning as in section 116E of the Government of Wales Act 2006 (Welsh taxpayers).

Section 4 Amendment of the Income Tax (Pay As You Earn) Regulations 2003

In regulation 7 (meaning of “code” etc ) after paragraph (2A) insert—

(2B) “C code” means a code which effects deductions of tax at the rates calculated under section 6B of ITA.

Section 5 Amendment of the Income Tax (Pay As You Earn) Regulations 2003

In regulation 108 (calculation of tax payable under PSA) in paragraph 2(d)—

(a) at the end of paragraph (iv) insert “and”, and

(b) after paragraph (iv) insert—

(v) at any Welsh rate applicable for the tax year to which the computation relates;