Scottish Budget 2023/2024 – Scottish Income Tax Rates
The Scottish Finance Secretary, John Swinney, announced the details of the Scottish Government Budget for 2023/2024 on 15 December 2022.
He advised the Scottish Parliament that the Scottish Budget was taking place “in the most turbulent economic and financial context most people can remember.” He also stated that he was wrestling with the challenges right now and that in the Autumn the Scottish government had to cut its spending plans midway through the current financial year by £1.2 billion.
Scottish Income Tax Rates
John Swinney announced that from 6 April 2023:-
- income tax rates are to rise for anyone earning more than £43,662 a year
- higher rate Scottish tax payers will pay tax at 42%
- the threshold for top rate Scottish taxpayers will reduce from £150,000 to £125,140
- the top rate of tax for Scottish taxpayers will increase to 47% for those earning £125,140 and above
The bands and rates from 6 April 2023 can be summarised as follows:-
| Income range | Rate |
| £12,571 – £14,732 * | 19% |
| £14,733 – £25,688 | 20% |
| £25,689 – £43,662 | 21% |
| £43,663 – £125,140 | 42% |
| Above £125,140 ** | 47% |
* Assumes individuals are in receipt of the Standard UK Personal Allowance of £12,570
** Those earning more than £100,000 will see their Personal Allowance reduced by £1 for every £2 earned over £100,000
Scottish Budget 2023/2024 – LBTT and ADS
Scottish Budget 2023/2024 – Non-Domestic Rates
The information in this blog provides only an overview of Scottish Government guidance and legislation in force at the date of publication and no action should be taken without consulting the detailed Scottish Government guidance and legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this blog can be accepted by the firm.
