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:
Over £11,850 – £13,850
Over £13,850 – £24,000
Over £24,000 – £43,430
Over £43,430 – £150,000
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.