Section 116I Supplemental powers to modify enactmentsF1
United Kingdom
The Treasury may by order modify F2sections 11B and 11CB of the Income Tax Act 2007 (income charged at Welsh rates) for the purpose of altering—
the definition of the income which is charged to income tax at the rates provided for under the section F3concerned, or
the application of the section F4concerned in relation to a particular class of income which is so charged.
The Treasury may by order modify any enactment not contained in Chapter 2 of Part 2 of the Income Tax Act 2007 (rates at which income tax is charged) so that it makes provision, in relation to a Welsh taxpayer, by reference to the Welsh basic rate, the Welsh higher rate or the Welsh additional rate, instead of the basic rate, the higher rate or the additional rate.
The Treasury may by order modify any enactment not contained in Chapter 2 of Part 2 of the Income Tax Act 2007 (rates at which income tax is charged) so that it makes provision, in relation to a Welsh taxpayer, by reference to the Welsh property basic rate, the Welsh property higher rate or the Welsh property additional rate, instead of the property basic rate, the property higher rate or the property additional rate.
If the Treasury consider it necessary or expedient to do so, they may by order provide that—
the fact that a Welsh rate has not been set by the Senedd for a tax year for any one or more of those purposes,
does not require any change in the amounts repayable or deductible under PAYE regulations between the beginning of that year and such later date as may be specified in the order.
The Treasury may by order make such modifications of any enactment as they consider necessary or expedient in consequence of or in connection with an order under subsection (1), (2) or (3).
An order under this section may, to the extent that the Treasury consider it to be appropriate, take effect retrospectively from the beginning of the tax year in which the order is made.
No order is to be made under subsection (1), (2) or (4) unless a draft of the statutory instrument containing it has been laid before, and approved by a resolution of, the House of Commons.
A statutory instrument containing an order under subsection (3) is subject to annulment in pursuance of a resolution of the House of Commons.
The power under subsection (1) does not include power to provide that any income which is—
savings income, or
dividend income which would otherwise be charged to income tax at a rate provided for under section 13 of the Income Tax Act 2007,
is income which is charged to income tax at a rate provided for under section 11B of that Act.
Annotations
Textual amendments
- F1
Pt. 4A Ch. 2 inserted (with effect in accordance with s. 14(3)-(5) of the amending Act) by Wales Act 2014 (c. 29), ss. 8(3), 14(2), 29(4); S.I. 2018/892, art. 3 (with arts. 5, 6, 8)
- F2
Words in s. 116I(1) substituted (16.9.2026 for the tax year 2027-28 and subsequent tax years) by Finance Act 2026 (c. 11), Sch. 2 para. 5(2)(a); S.I. 2026/1023, reg. 2
- F3
Word in s. 116I(1)(a) inserted (16.9.2026 for the tax year 2027-28 and subsequent tax years) by Finance Act 2026 (c. 11), Sch. 2 para. 5(2)(b); S.I. 2026/1023, reg. 2
- F4
Word in s. 116I(1)(b) inserted (16.9.2026 for the tax year 2027-28 and subsequent tax years) by Finance Act 2026 (c. 11), Sch. 2 para. 5(2)(b); S.I. 2026/1023, reg. 2
- F5
S. 116I(2A) inserted (16.9.2026 for the tax year 2027-28 and subsequent tax years) by Finance Act 2026 (c. 11), Sch. 2 para. 5(3); S.I. 2026/1023, reg. 2
- F6
Words in Act substituted (6.5.2020) by Senedd and Elections (Wales) Act 2020 (anaw 1), s. 42(2), Sch. 1 para. 2(19) (with Sch. 1 para. 2(11)-(14))
- F7
Words in s. 116I(3)(a) inserted (16.9.2026 for the tax year 2027-28 and subsequent tax years) by Finance Act 2026 (c. 11), Sch. 2 para. 5(4); S.I. 2026/1023, reg. 2
Notes on Part 4A
Textual amendments
- F1
Pt. 4A inserted (17.2.2015) by Wales Act 2014 (c. 29), ss. 6(2), 29(2)(b)(3)