The 2021 Scottish Budget today saw Finance Secretary Kate Forbes continue the policy of making the tax system fairer for low and middle incomes.
With the effects of the pandemic on the economy squeezing household budgets ever further and now rises in the cost of living and fuel price increases, the emphasis is on helping the lower end of the tax bracket.
The Scottish personal allowance is the same as rUK (rest of the uk) and therefore remains at £12,570. There has been no change to any tax rates and the five band system remains. However, there has been adjustment of the bands for the starter, basic and intermediate brackets.
Higher and top rate bands are to be frozen to the 2021 levels.
The Scottish income tax rates for 2022/2023 are as follows:
|
Bands |
Band name |
Rate |
|
Over £12,570* - £14,732 |
Starter Rate |
19% |
|
Over £14,732 - £25,688 |
Scottish Basic Rate |
20% |
|
Over £25,688 - £43,662 |
Intermediate Rate |
21% |
|
Over £43,662 - £150,000 |
Higher Rate |
41% |
|
Over £150,000 |
Top Rate |
46% |
The 2022 band changes see starter band widened by £65, the basic band widened by £327 and the intermediate band narrowed by £392. The other bandwidths remain the same as 2021.
Our calculators have now been updated to reflect these changes - just select Scotland as the tax region and 2022/2023 as the tax year.