Scottish tax changes for 2018/19
Joanne Walker looks at the income tax aspects of the Scottish Budget for 2018/19, and what they mean for Scottish taxpayers, including the effect on tax rates and liabilities, interactions with the UK tax system and PAYE.
In the June 2017 edition of TAXline, I looked at the personal tax aspects of the Scottish tax system, and in particular some of the areas of complexity thrown up by the Scottish government’s decision to freeze the higher rate threshold for 2017/18. In this article, I take a look at the proposals for 2018/19 and the issues that they create.
Under the Scotland Act 2016, the Scottish parliament has the power to set rates and bands of income tax for the non-savings and non-dividend income of Scottish taxpayers, including employment and pension income, self-employed profits and rental profits. The power allows the setting of any number of rates and bands, provided that there is a Scottish basic rate band.