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Draft Scottish Budget 2018/19

Finance Secretary Derek Mackay delivered the 2018/19 Scottish Draft Budget on Thursday 14 December 2017 setting out the Scottish government’s financial and tax plans including those for income tax changes.

The Scottish Government proposes the following rates and bands for 2018-19 for Scottish taxpayers on non-savings and non dividend income :

Scottish Bands Band name Scottish Rates (%)
Over £11,850* – £13,850 Starter 19
Over £13,850 – £24,000 Basic 20
Over £24,000 – £44,273 Intermediate 21
Over £44,273 – £150,000** Higher 41
Above £150,000** Top 46

*Assumes individuals are in receipt of the Standard UK Personal Allowance.
**Those earning more than £100,000 will see their Personal Allowance reduced by £1 for every £2 earned over £100,000.

In comparison the UK higher rate tax for 2018/19 has been set at £46,350 (for those entitled to the full UK personal allowance) and the tax rates for non-savings and non-dividend income have been maintained at 20%, 40% and 45% respectively.

So for 2018/19, Scottish taxpayers with employment income of £26,000 will pay the same amount of income tax as those with the similar income in the rest of the UK but for higher earners, with pay of £150,000, a Scottish taxpayer will pay an extra £1,770 of income tax than those on similar income in the rest of the UK.

For detailed information on the Draft Scottish Budget go to – Website Document