Scottish rates of income tax

Moves to try to simplify the tax system have apparently not reached the Scottish Parliaments, who have passed measures to bring in new, and extra tax rates and bands in Scotland, for the 2018-19 tax year.  The changes mean that both the higher and top rate of income tax will be increased by 1p, rising to 41p and 46p respectively.  In addition, the Scottish Government will levy a new intermediate rate of 21p on income between £24,000 and £43,430.  But the increase in the personal allowance together with the introduction of a 19p “starter rate” on earnings between £11,850 and £13,850 means that most Scots will pay less in 2018-19 than in 2017-18.   The net effect of the reforms is that around 1.4m people – 55% of Scottish workers – will be better off.  The new income tax bands are:

  • 19% rate: on income between £11,850 and £13,850
  • 20% rate: on income between £13,850 and £24,000
  • 21% rate: on income between £24,000 and £43,430
  • 41% rate: on income between £43,430 and £150,000
  • 46% rate: on income over £150,000

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