Scottish Income Tax
Published 30/07/18
Following the Scotland Act 2016, the income tax rates and thresholds for Scottish taxpayers differ from those in the rest of the UK. Since income tax is only partly devolved to Hollyrood, these rates apply to non- savings and non- dividend income (which are still taxed in line with the rest of the UK). Although Scottish income tax is collected by central government, it is paid to the Scottish Government. The rates for 2018/19 are shown in the following table:
The table shows the 2018-19 tax rates you pay in each band if you have a standard Personal Allowance of £11,850.
| Taxable Income | Band | Tax Rate |
|---|---|---|
| £11,851 to £13,850 | Starter Rate | 19% |
| £13,851 to £24,000 | Basic Rate | 20% |
| £24,001 to £43,430 | Intermediate Rate | 21% |
| £43,431 to £150,000 | Higher Rate | 41% |
| Over £150,000 | Top Rate | 46% |
So much for tax simplification! Pension contributions will be relieved at source at the appropriate rate for Scottish taxpayers, albeit HMRC will allow a flat 20% refund to the pension provider, ignoring the 19% band. Taxpayers will have to claim any relief beyond that by completing a self assessment tax return.