Scottish Budget freezes higher rate threshold
12 December 2018
The Scottish Government has proposed in its Budget that the higher rate threshold will remain at its current level of £43,430 and the starter and basic rate bands will increase by inflation.
Finance Secretary Derek Mackay has said that fairness and investment in public services will continue to be ‘front and centre’ of the Scottish Government’s tax policies in the year ahead.
Speaking as he delivered his budget statement in parliament, Mr Mackay confirmed 55% of taxpayers will pay less income tax next year than if they lived elsewhere in the UK, and 99% will pay less income tax than they do this year on their current income.
Increasing the starter and basic rate bands by inflation would protect low and middle-income taxpayers, he said, whilst freezing the higher rate threshold at £43,430 is forecast to deliver an extra £68 million.
Proposed rates and bands for 2019-20
|
Name |
Income Bands |
Rate |
|
Starter Rate |
£12,500* - £14,549 |
19% |
|
Basic Rate |
£14,549 – £24,944 |
20% |
|
Intermediate Rate |
£24,944 – £43,430 |
21% |
|
Higher Rate |
£43,430 – £150,000** |
41% |
|
Top Rate |
Above £150,000** |
46% |
* Assumes individuals are in receipt of 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.
For further information, the Scottish Government has produced an Income Tax factsheet about the tax proposals.