Minister for Public Finance and Digital Economy, Kate Forbes, delivered the 2020/21 Scottish Draft Budget on Thursday 6 February 2020, setting out the Scottish Government’s financial and tax plans.
The current Scottish income tax rates and bands for 2019/20 and the proposed rates and bands for 2020/21 on non-savings and non-dividend income are as follows:
Scottish Bands 2019/20 | Scottish Bands 2020/21 | Band name | Scottish Rates |
ยฃ12,501* – ยฃ14,549 | ยฃ12,501* – ยฃ14,585 | Starter | 19% |
ยฃ14,550 – ยฃ24,944 | ยฃ14,586 – ยฃ25,158 | Scottish Basic | 20% |
ยฃ24,945 – ยฃ43,430 | ยฃ25,159 – ยฃ43,430 | Intermediate | 21% |
ยฃ43,431 – ยฃ150,000** | ยฃ43,431 – ยฃ150,000** | Higher | 41% |
Above ยฃ150,000** | Above ยฃ150,000** | Top | 46% |
* assuming the individual is entitled to a full UK personal allowance.
** the personal allowance will be reduced if an individual’s adjusted net income is above ยฃ100,000. The allowance is reduced by ยฃ1 for every ยฃ2 of income over ยฃ100,000.
In the 2018 Autumn Budget, the UK Government announced that the UK-wide personal allowance would be frozen at its current level of ยฃ12,500 in 2020/21. The UK higher rate tax point for 2020/21 is also expected to be frozen at the 2019/20 amount of ยฃ50,000 (for those entitled to the full UK personal allowance) and the tax rates for non-savings and non-dividend income are expected to be maintained at 20%, 40% and 45% respectively. The additional rate of 45% is payable on income over ยฃ150,000.
Internet link: GOV.SCOT Budgetย