19 December 2023
The Scottish Government has today (19 December 2023) announced the measures and changes being brought in the Scottish Budget. Within are some shocking changes to the Scottish rates of income tax and associated bands.
The starter, intermediate and higher rates will remain the same as last year. The top rate will be increased by 1p to 48% to those earning over £125,140 per year.
The bands are where we have some major changes. We will see a new band, the advanced rate, applying to those earning from £62,430 (£75,000 when factoring the personal allowance) up to £125,140 in taxable income per year.
Additionally, the basic band and intermediate band will be increased by inflationary figures to apply from £14,877 and £26,562 respectively. The starting point of the higher and top bands will remain the same.
Therefore, the new rates will be as shown below:
|
|
Earnings Banding from |
Earnings Banding to |
Tax payable |
|
Personal allowance |
£0 |
£12,570 |
0% |
|
Starter |
£12,571 |
£14,876 |
19% |
|
Basic |
£14,877 |
£26,561 |
20% |
|
Intermediate |
£26,562 |
£43,662 |
21% |
|
Higher |
£43,663 |
£75,000 |
42% |
|
Advanced |
£75,001 |
£125,140 |
45% |
|
Top |
Above £125,140 |
Unlimited |
48% |
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