Scottish Income Tax rates announced 2020-21

Source: The Scottish Government | | 11/02/2020

Public finance minister Kate Forbes delivered her first Budget statement to the Scottish Parliament on 6 February 2020. This followed the shock resignation of finance minister, Derek Mackay.

This is the first time that Scotland has held a Budget before the rest of the UK. 

It was announced as part of the Scottish Budget that there would be no change in Income Tax rates and only a small change in the lower rate Income Tax thresholds. It was also announced that the higher rate threshold would be frozen at £43,430. 

The proposed Scottish rates and bands for 2020-21 are as follows:

 

Starter rate – 19% £12,501* - £14,585
Basic rate – 20% £14,586 - £25,158
Intermediate rate – 21% £25,159 - £43,430
Higher rate – 41% £43,431 - £150,000**
Additional rate – 46% Above £150,000**

 
* Assumes person is in receipt of the Standard £12,500 UK Personal Allowance
** Personal Allowance is reduced by £1 for every £2 earned over £100,000

The figures are subject to approval by the Scottish Parliament. For the vast majority of individuals, the question of whether or not they are defined as a Scottish taxpayer is a simple one – they will either live in Scotland and thus be a Scottish taxpayer or live elsewhere in the UK and not be a Scottish taxpayer.



 

Latest News

Tax Diary April/May 2020
31/03/2020 - More...
1 April 2020 - Due date for Corporation Tax due for the year ended 30 June 2019. 19 April 2020 - PAYE and NIC deductions due for month ended 5 April 2020. (If you pay your tax

National Minimum Wage compliance in relation to pay advances and loans
30/03/2020 - More...
The government has issued a bulletin providing advice for employers regarding compliance with the National Minimum Wage (NMW) framework, particularly with regard to the effect

Search


Newsletter

With our newsletter, you automatically receive our latest news by e-mail and get access to the archive including advanced search options!

» Sign up for the Newsletter
» Login