[11:49] Stuart Hogg
Legislation

Scottish Income Tax – Additional Tax Bracket

By February 2, 2024No Comments

Scottish Income Tax – Additional Tax Bracket

The Scottish Parliament has made Scottish income tax a little more complex again by introducing a new rate.  This new rate applies to non-savings, non-dividend income but the Personal Allowance is not affected as this is set by the UK Government.

The new rate is known as the Advanced Rate and slots in between the higher rate and the top rate.  This gives Scottish tax payers now six different bands they could be affected by although numbers will be low as the top bands are approached.

From April 2024 the Personal Allowance is £12 570, so assuming this remains and the individual has an S1257L tax code the bands will be as follows:

Band Band Name Rate
£12 571 – £14 876 Starter Rate 19%
£14 877 – £26 561 Scottish Basic Rate 20%
£26 562 – £43 662 Intermediate Rate 21%
£43 663 – £75 000 Higher Rate 42%
£75 001 – £125 140 Advanced Rate 45%
Above £125 140 Top Rate 48%

England, Northern Ireland and Wales will remain with three tax brackets so assuming a 1257L or C1257L tax code:

Band Band Name Rate
£12 571 – £50 270 Basic Rate 20%
£50 271 – £125 140 Higher Rate 40%
Above £125 140 Additional / Top Rate 45%

There could be further changes after the UK Government’s Spring Budget on the 6th March but the above is our expectation.