Scottish Income Tax rates announced 2020-21

Scottish Income Tax rates 2020-21 | Accountants in Caundle Marsh | Accountants in Sutton Poyntz | Accountants in Haughhead

Scottish Income Tax rates announced 2020-21

Topic: Scottish Income Tax rates 2020-21

Public finance minister Kate Forbes delivered her first Budget statement to the Scottish Parliament on 6 February 2020. This followed the shock resignation of finance minister, Derek Mackay.

This is the first time that Scotland has held a Budget before the rest of the UK.

It was announced as part of the Scottish Budget that there would be no change in Income Tax rates and only a small change in the lower rate Income Tax thresholds. It was also announced that the higher rate threshold would be frozen at £43,430.

The proposed Scottish rates and bands for 2020-21 are as follows:

 

Starter rate – 19% £12,501* – £14,585
Basic rate – 20% £14,586 – £25,158
Intermediate rate – 21% £25,159 – £43,430
Higher rate – 41% £43,431 – £150,000**
Additional rate – 46% Above £150,000**

* Assumes person is in receipt of the Standard £12,500 UK Personal Allowance
** Personal Allowance is reduced by £1 for every £2 earned over £100,000

The figures are subject to approval by the Scottish Parliament. For the vast majority of individuals, the question of whether or not they are defined as a Scottish taxpayer is a simple one – they will either live in Scotland and thus be a Scottish taxpayer or live elsewhere in the UK and not be a Scottish taxpayer.

To know more about Scottish Income Tax rates 2020-21Book a Free Consultation

See also  Corporate Capital Loss Restriction

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