The Scottish Draft Budget took place on 12 December 2018. To assist those of you who might be affected, we have published a table containing the 2019/20 proposed rates and bands (for non-savings and non-dividend income), along with the 2018/19 rates and bands.
| Scottish Bands 2018/19 | Scottish Bands 2019/20 | Band Name | Scottish Rates |
|---|---|---|---|
| Over £11,850* - £13,850 | Over £12,500* - £14,549 | Starter | 19% |
| Over £13,850 - £24,000 | Over £14,549 - £24,944 | Scottish Basic | 20% |
| Over £24,000 - £43,430 | Over £24,944 - £43,430 | Intermediate | 21% |
| Over £43,430 - 150,000** | Over £43,430 - 150,000** | Higher | 41% |
| Over £150,000** | Over £150,000** | Top | 46% |
* assuming the individual is entitled to a full UK personal allowance.
** The personal allowance will be reduced if an individual’s adjusted net income is above £100,000.
The allowance is reduced by £1 for every £2 of income over £100,000.
The personal allowance is currently £11,850 for 2018/19 and will increase to £12,500 for 2019/2020.
- For UK taxpayers entitled to a full personal allowance, the higher rate is set at £50,000.
- The tax rates for non-savings and non-dividend income remain at 20%, 40%, and 45% for income over £150,000.
The rate for 2019/2020 will mean that Scottish employees earning approximately £27,000 from employment income will pay the same income tax as the rest of the UK on a similar income. Higher rate earners in Scotland with income of £150,000 and over will pay, approximately, £2,670 of income tax more than those on a similar income in the rest of the UK.