Commentary

E1.102C Income tax in Scotland

Personal and employment tax

E1.102C Income tax in Scotland

Scottish income tax

E1.102C Income tax in Scotland

Under Scotland Act 1998, the Scottish Government was given powers to vary the basic rate of income tax for Scottish taxpayers by increasing or reducing it, by not more than three pence in the pound, from that determined by the UK Parliament. However, this power was never used.

These provisions were repealed by Scotland Act 2012 and replaced by the power to set a single Scottish rate of income tax (also known as SRIT) for the non-savings non-dividend income (more commonly referred to as 'non-savings income' in practice, see E1.101E) of Scottish taxpayers1. The provisions in Scotland Act 2012 (which applied for the 2016/17 tax year only2) differed from the original powers in Scotland Act 1998 in that the Scottish rate of income tax for non-savings income was 10% less than that prevailing in the rest of the UK, and ITA 2007, s 6 was varied accordingly. The Scottish Government then set the Scottish rate of income tax, which was added to the reduced rate of UK income tax for Scottish taxpayers. In 2016/17, the Scottish rate of income tax was set at 10%. This means that there was no difference in the liabilities between Scottish taxpayers and those in the rest of the UK in the 2016/17 tax year.

Scottish income tax since 6 April 2017

Further amendments were made to Scotland's income tax powers by Scotland Act 2016. Since 6 April 2017, the Scottish Government has had the power to vary

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