Scottish income tax changes approved
23rd February 2018
The Scottish government has approved an overhaul of the Scottish income tax system, which will introduce new rates and bands from 6 April 2018.
Under the new system, most taxpayers in Scotland will fall into one of 5 income tax bands, following the introduction of 2 new bands either side of the basic rate.
The new bands due to be added are a starter rate of 19p for those earning between £11,851 and £13,850, and an intermediate rate of 21p for earnings between £24,001 and £44,430.
Members of the Scottish parliament voted in favour of the proposals, which were drafted in December's Scottish Budget 2017, by 67 votes to 50.
Finance secretary Derek Mackay said 70% of taxpayers in Scotland will pay less income tax as a result of the reforms.
"Our progressive approach to reforming income tax will deliver greater tax fairness and protect the lowest earning taxpayers in Scotland."
|Scottish bands||Taxable income 2018/19||Rate||Taxable income 2017/18||Rate|
|Personal allowance||Up to £11,850||0%||Up to £11,500||0%|
|Starter rate||£11,851* to £13,850||19%||n/a|
|Basic rate||£13,851 to £24,000||20%||£11,501 to £43,000||20%|
|Intermediate rate||£24,001 to £44,430||21%||n/a|
|Higher rate||£44,431 to £150,000**||41%||£43,001 to £150,000||40%|
|Top rate||Above £150,000**||46%||Above £150,000||45%|
* Assumes individuals are in receipt of the personal allowance.
** Those earning more than £100,000 will see their personal allowance reduced by £1 for every £2 earned over £100,000.
Talk to us about your current tax liability.