Newsletter issue – February 2024
Scottish taxpayers earning more than £75,000 are set to pay a new higher rate of 45% from 2024-25. The Scottish Government has announced the change following its Budget. The change means Scotland now has six different income tax rates. The rest of the UK has three.
The 'advanced' band, as it has been called, will apply to those earning between £75,000 to £125,140. The starter, basic and intermediate threshold is set to rise with inflation, but the higher rate (43%) would still kick in at the same rate - £43,662.
Taxpayers in Scotland already faced the highest tax band in the UK at 47% for people earning more than £125,000.
The Scottish Government also announced that band will also rise by 1% to 48%. Anybody in Scotland who earns over £28,850 will, according to analysts, pay higher taxes than their counterparts elsewhere in Britain.