Scotland's five income tax bands and tax relief for pensions
Following the announcement of new income tax rates for Scottish taxpayers for 2018/19, the government is looking at ways of addressing the issue of the tax relief due on Scottish taxpayers' pension contributions.
Tax relief on pension contributions is a complex matter and depends on the marginal tax rate of the individual concerned and whether or not the contributions are being paid with relief at source or under net pay arrangements. The following link details how relief will be given for 2018/19. If you would like help in this complex area please contact us.
The income tax rates for Scottish taxpayers on income other than savings and dividend income are now expected to be as follows:
| Scottish Bands (£) |
Band name |
Scottish Rate (%) |
| 0 - 2,000 |
Starter |
19 |
| 2,001 - 12,150 |
Basic |
20 |
| 12,151 - 31,580 |
Intermediate |
21 |
| 31,581 - 150,000 |
Higher |
41 |
| Over 150,000 |
Top |
46 |
Scottish taxpayers are entitled to the same personal allowance as individuals in the rest of the UK which for 2018/19 is £11,850. The allowance is reduced by £1 for every £2 of adjusted net income in excess of £100,000. The bands and allowances are detailed in the P9X.
Internet links: GOV.UK pensions newsletter P9X 2018