The higher rate band is now expected to start at the lower level of £43,431.
Following the publication of the Scottish Draft Budget last year, there have been ongoing negotiations between the parties at Holyrood to pass the Budget through the Scottish Parliament. An agreement has now been reached between the Scottish National Party and the Scottish Green Party on 31 January 2018, which has resulted in changes being made to the previously announced tax bands and rates for relevant non-savings income of Scottish taxpayers for 2018-19. The key change from the December 2017 proposals is that the higher rate band is now expected to start at the lower level of £43,431. The Scottish Government estimates that this will raise an additional £55 million of tax revenue.
The new rates and bands of tax are as follows:
|Starter rate||19||£11,850* - £13,850|
|Basic rate||20||£13,851 - £24,000|
|Intermediate rate||21||£24,001 - £43,430|
|Higher rate||41||£43,431 - £150,000**|
|Top rate||46||Above £150,000**|
* Assumes individuals receive the standard UK Personal Allowance.
** Those earning more than £100,000 will see their Personal Allowance reduced by £1 for every £2 earned over £100,000.
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