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Scottish Budget - New income tax rates

Scotland’s new system of income tax rates and bands has come into force.  The new Scottish system adds a 19% "starter" rate for those on low incomes, as well as a 21% rate for those who earn above the median salary. It also adds a penny to the higher and top rates, bringing them to 41% and 46%.

Previously, Holyrood had matched the structure of the tax system in the rest of the UK, with three bands - a basic rate at 20%, a higher rate at 40% and a 45% top rate.

Scottish Budget 

New income tax rates 

19p Starter rate from £11,850 to £13,850    

20p Basic rate from £13,851 to £24,000

·         21p New intermediate rate from £24,001 to £43,430 

·         41p Higher rate from £43,431 to £150,000 

·         46p Additional rate from £150,000

 

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