The UK-wide savings rates of income tax will be renamed as 'savings basic', ‘savings additional’ and, 'savings higher'.

The main rates of income tax will then apply to the non-savings, non-dividend income of any individual taxpayer that is resident in the UK and is not subject to the Scottish rate of income tax (SRIT).

A default rate of income tax will apply to the non-savings, non-dividend income of taxpayers who are not subject to either the UK main rates of income tax or SRIT. These include trustees, non-UK resident companies and non-UK resident individuals.

In April 2017, the UK government will devolve the power to set the rates and thresholds that apply to the 'non-savings, non-dividends' income of individuals resident in Scotland to the Scottish government. This will mean that members of the Scottish parliament will have the final say on Scottish income tax.

From 6 April 2016, the Scottish parliament will set SRIT on  non-savings, non-dividend income for Scottish resident taxpayers. In December, Scottish finance minister John Swinney confirmed that the SRIT would be set at 10%, effectively creating equalised UK/Scotland income tax rates.

Legislation will be introduced in Finance Bill 2016 to amend chapter 2 of part 2 of Income Tax Act (ITA).

A tax information and impact note, English votes for English laws on income tax technical policy paper, is available here