Published by Phil Duly on
From the 2017/18 tax year, the overall income tax paid by some Scottish taxpayers will differ to that paid by equivalent counterparts in the rest of the UK.
For the 2017/18 tax year, the UK Government has increased the higher rate income tax threshold from £43,000 to £45,000. The Scottish Government, however, has maintained the threshold at £43,000.
Overall basic, higher and additional rates of income tax have been maintained at 20%, 40% and 45% respectively for all UK taxpayers.
This means Scottish taxpayers with income above £43,000 will now pay a higher amount of overall income tax than equivalent counterparts in the rest of the UK (on income above £43,000 and up to £45,000).
This briefing note provides further explanation in the context of pension contribution tax relief.