Five Band Tax System Remains For 2021 In Scottish Budget

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November 29th 2021
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Five Band Tax System Remains For 2021 In Scottish Budget

No major income tax changes in Scottish Budget published January 28th 2021.

The Scottish Budget has just been published and reveals only slight changes to the starter band, basic band and higher rate threshold for Scotland. The tax rates in the five band structure remain the same.

There had previously been a commitment to raise the personal allowance to £12,750 regardless of the rest of the UK fiscal strategy. However, due to the UK government's move to only raise the 2021 personal allowance by RPI, Scotland's pledge would add additional complexity to the already complex tax structure.

We have updated our tax tables for 2021/2022 based on information that has already been confirmed through various publications. This includes the £12,570 new personal allowance from April 2021 (an increase of £70 on last year).

Head on over to our tax rates and allowances section to see the full breakdown. In the meantime, below are the income tax band's for Scotland from April.

BandIncome Range (Pre-Personal Allowance)Income Range (Post-Personal AllowanceRate
StarterOver £12,570 - £14,667 £0 - £2,09719%
BasicOver £14,667 - £25,296 £2,097 - £12,72620%
IntermediateOver £25,296 - £43,662 £12,726 - £31,09221%
HigherOver £43,662 - £150,000 £31,092 - £150,00041%
TopOver £150,000 Over £150,00046%

The higher rate threshold in Scotland in 2021 is once again kicking in far earlier than in the rest of the UK - £6,608 earlier. The higher rate threshold in the UK for 2021/2022 is £37,700 compared to £31,092 in Scotland.

Our tax calculators and tax tools will be updated for the 2021/2022 tax year after the March 3rd UK Budget by which time all the figures should have been fully confirmed.

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