Due to “an anomaly that meant some higher rate taxpayers saw their bills fall while others on slightly lower incomes saw a rise, due in part to changes in the personal allowance,” Derek Mackay, Scottish Finance Secretary, has amended the proposed Scottish Income Tax bands for 2018/19.

Scottish taxpayers’ Income Tax rates, on income other than savings and dividend income, are now expected to be as follows:

Band Earnings
Band
New
Proposed Rate

Starter

Over £11,850 – £13,850

19%

Basic

Over £13,850 – £24,000

20%

Intermediate

Over £24,000 – £43,430

21%

Higher

Over £43,430 – £150,000

41%

Top

Over £150,000

46%

Mr Mackay has said:

“As a parliament of minorities, we must work across the chamber to find compromise and consensus in order to give support, sustainability, and stimulus to our economy and to our public services. … Our changes to tax ensure Scotland has a progressive tax system – with 70% of taxpayers paying less next year than they do currently and 55% paying less than they would across the rest of the UK – while businesses benefit from support for investment.”

If you are living in Scotland, or you are concerned that this update will impact you, please contact us for more guidance.