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In April there will be new Scottish tax rates in force.\u00a0 These separate rates of income tax will apply to you if you live in Scotland. As well as the Scottish basic income tax rates, the Scottish parliament has the power to also set (and name) other Scottish rates. These rates are fully devolved: that is, Scottish taxpayers pay tax on any applicable income at the Scottish rates only, and not subject to rates applicable elsewhere in the UK (which continue to be set by the UK parliament).<\/p>\n
The various Scottish income tax rates do not apply to the following:<\/p>\n
–\u00a0 savings income
\n–\u00a0 dividend income, and
\n–\u00a0 non-residents on the remittance basis<\/p>\n
The definition of a Scottish taxpayer is based on the individual’s main place of residence. If your only or main residence for a given tax year is in Scotland, then you are going to be a Scottish taxpayer. If you have more than one main residence, the one which was used for the longest period in the year determines your status. If you haves no main residence, it is necessary to count the number of days spent in Scotland and elsewhere in the UK. By definition, a non-resident cannot be a Scottish taxpayer.<\/p>\n
2018\/19 Scottish income\u00a0tax\u00a0rates\u00a0and bands have been published in respect of Scottish taxpayers, as shown in the table below, leading to further complexity even for those with relatively modest incomes.<\/p>\n
As the\u00a0higher\u00a0rates\u00a0of\u00a0tax\u00a0increasingly hit Scottish taxpayers differently to their non-Scottish counterparts, it is particularly important that:<\/p>\n
–\u00a0\u00a0HMRC is informed of any change of address which affects residence; and
\n–\u00a0\u00a0individuals changing residence check any\u00a0tax\u00a0calculations very carefully.<\/p>\n
<\/p>\n
<\/td>\n | Rate<\/strong><\/td>\nIncome limits 2018\/19<\/strong> | \n\u00a3<\/strong><\/td>\n<\/tr>\n<\/thead>\n\n Starting rate<\/td>\n | 19%<\/td>\n | 11,850 to 13,850<\/td>\n<\/tr>\n | Basic rate<\/td>\n | 20%<\/td>\n | 13,851 to 24,000<\/td>\n<\/tr>\n | Intermediate rate<\/td>\n | 21%<\/td>\n | 24,001 to 44,272<\/td>\n<\/tr>\n | Higher rate<\/td>\n | 41%<\/td>\n | 44,273 to 150,000<\/td>\n<\/tr>\n | Top rate<\/td>\n | 46%<\/td>\n | >150,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n | <\/p>\n Scottish Budget, 14 December 2017<\/em><\/p>\n From 6 April 2018, the Scottish higher rate income tax threshold, at which tax will be payable at a rate of 41%, is destined to be \u00a343,430 (announced originally at \u00a344,273).<\/p>\n Scottish Government web posting, 31 January 2018<\/p>\n Crunchers – Accountants Edinburgh<\/em><\/strong><\/p>\n \u00a9 Photo Credit <\/strong>John Loo<\/a><\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" |