Scottish government leaves income tax unchanged

Scottish government leaves income tax unchanged

International Association of Bookkeepers - Bookkeeping Qualifications, Bookkeeping Study and exams

Income tax rates and bands will be unaltered for the coming year, said the Scottish government today. Meanwhile, the thresholds for all but the top rate will rise in line with CPI inflation (0.5%).

Cabinet Secretary for Finance, Kate Forbes, said “Exceptional circumstances require an exceptional response”. She revealed that local authorities will also be given monies to help them hold down council tax. The government is making an additional £90 million available to compensate councils that choose to freeze their council tax at 2020-21 levels.

Business pandemic tax reliefs are also being extended and the poundage rate of non-domestic rates will be cut to 49p.

Proposed Scottish income tax rates – 2021-22

Starter rate: Over £12,570 – £14,667 (19%)

Basic rate: Over £14,667 – £25,296 (20%)

Middle rate: Over £25,296 – £43,662 (21%)

Higher rate: Over £43,662 – £150,000 (41%)

Top rate: Over £150,000 (46%)

Latest Posts