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Changes to Scottish Income Tax rates 2024-25

18 April 2024

For the 2024-25 tax year, Scottish Income Tax rates will change with a new 45% advanced rate band for income between £75,000 and £125,140. The top rate increased by 1p, and other rates remained the same. These changes aim to generate an extra £1.5 billion in revenue.

Here’s a reminder: Scottish Income Tax rates will change for the 2024-25 tax year. The Scottish Budget measures announced a new tax band, the advanced rate band. This band will apply a 45% tax rate to annual income between £75,000 and £125,140, starting from 6 April 2024.

Moreover, the top rate of tax saw an addition of 1p. The starter and basic rate bands increased in line with inflation (6.7%, based on the Consumer Price Index from September 2023). The Starter, Basic, Intermediate and Higher tax rates remained the same. The Higher rate threshold stayed at £43,662. These measures should bring in an extra £1.5 billion in Income Tax revenue. These tax adjustments are part of the government’s efforts to balance the budget and fund public services, so it’s essential to stay informed and adjust your financial planning as needed.

Here are the Scottish income tax rates and bands for 2024-25:

Starter rate – 19%£12,571 – £14,876
Basic rate – 20%£14,877 – £26,561
Intermediate rate – 21%£26,562 – £43,662
Higher rate – 42%£43,663 – £75,000
Advanced rate – 45%£75,001 – £125,140
Top rate – 48%Above £125,140

The standard personal allowance for 2024-25 remains frozen at £12,570.

Source: The Scottish Government Tue, 16 Apr 2024 00:00:00 +0100

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