Accounting and Taxation advice in Hexham, Northumberland

Scottish Income Tax revisions

Derek Mackay, Scottish Finance Secretary, has made a change to the proposed Scottish income tax bands for 2018/19 (which he announced in December 2017 in the Scottish Draft Budget).

Mr Mackay confirmed that this change would “remove an anomaly that meant some higher rate tax payers saw their bills fall while others on slightly lower incomes saw a rise, due in part to changes in the personal allowance.” [Scottish Government website] 

For Scottish taxpayers, the income tax rates (on income other than savings and dividend income) are now expected to be as follows:


Budget Bill 2018-19


Income Bands



Starter Rate

£11,850* - £13,850


Basic Rate

Over £13,851 - £24,000


Intermediate Rate

Over £24,001 - £43,430


Higher rate

Over £43,431 - £150,000*


Top Rate

Above £150,000 **



* Assumes individuals receive the standard UK Personal Allowance.

** Those earning more than £100,000 will see their Personal Allowance reduced by £1 for every £2 earned over £100,000



As a result, while 70% of taxpayers will continue to pay less next year than they currently do, 55% will pay less than they would elsewhere in the UK. All those earning above the new Higher Rate Threshold of £43,430, a 1% increase on the 2017-18 threshold, will see a modest increase in income tax.’


Confirming the changes during the Budget debate, Mr Mackay said, Our changes to tax ensure Scotland has a progressive tax system - with 70% of taxpayers paying less next year than they do currently and 55% paying less than they would across the rest of the UK - while businesses benefit from support for investment.

[Link to full announcement: ]

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