The Scottish Finance Bill 2017/18 has been passed by the Scottish Parliament
The Scottish Finance Bill 2017/18 has been passed by the Scottish Parliament, freezing the basic rate of income tax at 20%.
It also freezes ‘the higher and additional rates at 40% and 45% respectively’, and maintains the higher rate of income tax threshold at £43,000 in 2017/18.
This means:
| Scottish income tax rates | Scottish bands |
| Basic rate: 20% | Above £11,500* up to £43,000 |
| Higher rate: 40% | Above £43,000 up to £150,000 |
| Additional rate: 45% | Above £150,000** |
* Assumes person is in receipt of the standard UK personal allowance.
** Personal allowance is reduced by £1 for every £2 earned over £100,000.
These are different rates from those used in England and Wales. HMRC has, as you would expect, been issuing P9X notices containing rates, thresholds and tax codes required by employers and payroll providers.