There has been a historic vote in the Scottish Parliament where, for the first time in its history, MSPs have passed measures setting all income tax rates and bands, confirming that higher rate Scottish taxpayers will be paying more tax than their counterparts elsewhere in the UK
From 6 April this year, rates will be frozen and the threshold at which people start paying the higher tax rate will remain at £43,000, rather than increasing to £45,000 as in the rest of the UK.
This means around 368,000 Scottish taxpayers will pay more income tax, in the £43,000 to £45,000 income bracket, and will be £400 worse off compared to those working in the rest of the UK.
The proposals Parliament has passed are:
Scottish Income Tax proposed rates and bands 2017-18
Scottish income tax rate | Scottish Bands |
Scottish Basic rate 20% | Over £11,500* - £43,000 |
Scottish Higher rate 40% | Over £43,000 - £150,000 |
Scottish Additional Rate 45% | Over £150,000 and above**- |
Derek Mackay, Scottish finance secretary, said: ‘This is a historic day for Scotland – the first time ever that rates and bands of income tax are being set by the Scottish Parliament in line with Scotland’s needs and priorities.
‘This represents the best deal on tax and public services anywhere in the UK – increasing investment in the NHS and helping protect free prescriptions, free personal care for the elderly, mitigation of the bedroom tax and free higher education.’
