The Scottish government has exercised it powers to set income tax rates and thresholds, and plans to introduce a range of rates for 2018 to 2019.
The draft Scottish Budget set out changes including:
a new starter rate of income tax of 19 per cent on the first £2,000 of income above the Personal Allowance changing the Scottish basic rate threshold so that it applies to income from £13,851 to £24,000 only (20 per cent) introducing a new intermediate tax band of £24,001 to £43,430, which will be liable to income tax at 21 per cent increasing the Scottish higher and top rates to 41 per cent and 46 per cent respectively.A summary table of these proposals is available here. These rates will be ratified in February 2018, once passed by the Scottish Parliament.
