Tel: 01223 354233
Partners
Stuart Berriman (FCCA, ACA)
Paul Chubbock (FCCA)
Ian McGraw (Dip, PFS)
Naomi Hedger (BFP, FCA, CTA)
Income Tax Rates and Bands
Recent income tax rates and bands are as follows:
| 2020/21 | 2021/22 | 2022/23 | 2023/24 | |
| Savings rate: 10%, 0% from 2015/16 | Up to £5,000 | Up to £5,000 | Up to £5,000 | Up to £5,000 |
| Dividend Allowance: 0% | Up to £2,000 | Up to £2,000 | Up to £2,000 | Up to £2,000 |
| Basic rate: 20% | Up to £37,500 | Up to £37,700 | Up to £37,700 | Up to £37,700 |
| Higher rate: 40% | £37,501 - £150,000 | £37,701 - £150,000 | £37,701 - £150,000 | £37,701 - £150,000 |
| Additional rate: 45% | Over £150,000 | Over £150,000 | Over £150,000 | Over £150,000 |
When the personal allowance is taken into account an individual will start to pay tax at 40% when their total income exceeds £50,270 in 2021/22. This threshold (and the 45% threshold) can be increased if the taxpayer pays personal pension contributions or makes gift aid donations.
For 2021/22 the intermediate rate band on non-savings income for Scottish Taxpayers is set at £43,662. For all other income types it remains in line with the main UK band of 50,000.
Scottish Income Tax Rates and Bands for non-savings income
| 2020/21 | 2021/22 | 2022/23 | 2023/24 | |
| Starter rate: 19% | Up to £2,085 | Up to £2,097 | Up to £2,097 | Up to £2,162 |
| Basic rate: 20% | £2,086 to £12,658 | £2,098 to £12,726 | £2,163 to £13,118 | £2,163 to £13,118 |
| Intermediate rate: 21% | £12,659 to £30,930 | £12,727 to £31,092 | £13,118 to £31,092 | £13,118 to £31,092 |
| Higher rate: 41% | £30,931 to £150,000 | £31,093 to £150,000 | £31,093 to £150,000 | £31,093 to £150,000 |
| Additional rate: 46% | Over £150,000 | Over £150,000 | Over £150,000 | Over £150,000 |
