E1.102D Definition of a Scottish taxpayer for income tax purposes
Since 6 April 2017, the Scottish Government has had the power to vary the basic rate, higher rate and additional rate of income tax for the non-savings non-dividend income of Scottish taxpayers (usually referred to as 'non-savings income' in practice). It can also create new tax bands. It does not have the power to set the level of the personal allowance, set different rates for different types of non-savings income (eg different rates which apply to self-employment income only, say), or alter/create/abolish income tax reliefs. These remain reserved by the UK Government.1
The Scottish income tax rates and bands and the income to which it applies are discussed in detail in E1.102C. The implications of the Scottish income tax rates and bands for other areas of the tax system is covered in E1.102E. The definition of Scottish taxpayer is discussed below.
It is important to appreciate that only individuals can be Scottish taxpayers for the purposes of Scottish income tax. Any other persons residing in Scotland and subject to income tax (eg Scottish trustees or Scottish personal representatives) fall within the UK rules, see E1.101.
Definition of a Scottish taxpayer
A Scottish taxpayer is defined as an individual who is UK resident under the statutory residence test in a tax year (see E6.102A–E6.102L2) and either3:
(A) has a 'close connection' with Scotland
(B) does not have a close connection with any part of the UK other than Scotland and spends more days of