Derek Mackay, Scottish Finance Secretary, has made a change to the proposed Scottish income tax bands for 2018/19 which he announced in December 2017 in the Scottish Draft Budget.
The change is being made to 'remove an anomaly that meant some higher rate taxpayers saw their bills fall while others on slightly lower incomes saw a rise, due in part to changes in the personal allowance'.
Scottish taxpayers income tax rates on income other than savings and dividend income are now expected to be as follows:
| Scottish Bands |
Band name |
Scottish Rate |
| Over £11,850 - £13,850 |
Starter |
19% |
| Over £13,850 - £24,000 |
Basic |
20% |
| Over £24,000 - £43,430 |
Intermediate |
21% |
| Over £43,430 - £150,000 |
Higher |
41% |
| Over £150,000 |
Top |
46% |
Confirming the changes during the Stage 1 of the Budget debate, Mr Mackay said:
'As a parliament of minorities, we must work across the chamber to find compromise and consensus in order to give support, sustainability and stimulus to our economy and to our public services… Our changes to tax ensure Scotland has a progressive tax system - with 70% of taxpayers paying less next year than they do currently and 55% paying less than they would across the rest of the UK - while businesses benefit from support for investment.'
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