What is the Scottish Rate of Income tax? What is the rate of Scottish Tax?               

Scottish Income Tax Rates for 2019-20 were announced by Scotland's Finance Secretary, Derek Mackay during the Scottish Budget on 12 December 2018 and were approved by the Scottish parliament on 19 February 2019.

Scottish Income tax only applies to non-savings income. The personal savings allowances therefore apply for Scottish taxpayers. 

The new bands are:

2019/20

Rate

%

Band of income    

£

Personal allowance (tax -free band)            

 0  

 Up to 12,500

Starter rate

19

12,500-14,549

Basic rate

20

14,549-24,944

Intermediate rate

21

24,944-43,430

Higher rate

41

43,430-150,000

Additional rate

46

150,000+

 

 

 2018/19

Rate %

Band of income

£

Personal allowance (tax -free band) 0  Up to 11,850
Starter rate 19 11,850-13,850
Basic rate 20 13,850-24,000
Intermediate rate 21 24,000-43,430
Higher rate 41 43,430-150,000
Additional rate 46 150,000+

 

Despite the differences between Scottish Income Tax rates and the rest of the UK, the following reliefs will still operate in the same way, giving the same relief:

  • Transferred Marriage Allowance will still give relief at 20%.
  • Gift Aid relief will still be 25p for every £1 donated.
  • Scottish taxpayers receiving relief on Pension contributions at source will receive 20% relief in their pension pots and there will still be scope for claiming additional relief where appropriate. HMRC have confirmed that 21% taxpayers will receive the additional 1% through their tax codes.
  • Mortgage relief for landlords will still be at 20%.

Scottish taxpayer who receive a social security lump sum will be taxed at the appropriate Scottish tax rate.

2017/18

The rates for 2017/18 were the same as the UK rates with the exception of the higher rate threshold which Scotland kept at £43,000, whereas the rest of the UK increased this to £45,000.

This means the Scotland basic rate band is £31,500 in 2017/18, as the personal allowance moved to £11,500, along with the rest of the UK.

Scottish rates and bands for 2017/18

Rate %

Band of income

£

Personal allowance 0 Up to 11,500
Basic rate 20 Above 11,500 up to 43,000
Higher rate 40 Above 43,000 up to 150,000
Additional Rate 45 Above 150,000

 

 

Links: Compare to English Income Tax rates and allowances