Firstminister.gov.scot
facebook
instagram
flickr
YouTube
twitter
  • Home
  • News
  • Join In
  • People
  • About

Home » News » Scottish Government Income Tax proposals

Scottish Government Income Tax proposals

22 March 2016

These are the Scottish Government’s proposals for setting the income tax rates and bands payable by Scottish taxpayers from 2017/18.

From 2017/18, the Scotland Bill will give the Scottish Parliament powers over all revenue raised from non-savings non-dividend income tax paid by Scottish taxpayers.

The Scottish Parliament will set the rates and band thresholds – excluding the personal allowance – for the first time.

The proposals at a glance

By limiting increases in the higher rate threshold to a maximum of inflation more than £1 billion of additional revenues will be generated up to the end of 2021/22 to be invested in public services such as the NHS.

More than 1bn invested in public services

99 per cent of taxpayers in Scotland will pay no more than they do currently.

99percent pay no more tax than currently

There will be no increase in the basic rate of tax, in a move that will protect 90 per cent of people in Scotland.

No increase in basic rate protect 90 per cent of people
The lowest paid taxpayers will be better off by 2021/22, through a new zero rate band that will take the effective Personal Allowance for Scottish taxpayers from £12,500 to £12,750.

Zero rateThis is not the time to provide significant tax cuts to higher and additional rate taxpayers, so the higher rate threshold will increase by a maximum of inflation.

Proposed income tax band rates and thresholds in 2017/18 compared to 2016/17

Proposed income tax band rates and thresholds in 2017/18 compared to 2016/17

2016/17: Basic rate: = 20% Thresholds: £11,000; Higher Rate = 40% Thresholds: £43,000; Additional Rate = 45% Thresholds: >£150,000

2017/18: Basic rate = 20% Thresholds: £11,500; Higher Rate = 40% Thresholds: £43,387; Additional Rate = 45% Thresholds: >£150,000

Rotating Tweets Shortcode

Twitter

We’re now in the pre-election period. Our social media activity is restricted until after the @ScotParl election on 6 May. Read more information ➡ bit.ly/PreElectionGui…

As part of Kinship Care Week First Minister @NicolaSturgeon has sent a message of thanks to kinship carers for everything they do to support children & young people #KinshipCareWeek pic.twitter.com/0b8ado4B6x

FM @NicolaSturgeon met representatives from the education sector to thank them for their efforts during the pandemic. Even though the group works across very different areas they all agreed that among the challenges there has been a lot to celebrate in the last 12 months 👏 pic.twitter.com/LgoeKULJpZ

Watch First Minister @NicolaSturgeon wish everyone celebrating a peaceful and happy #ChineseNewYear ⬇️ #YearOfTheOx pic.twitter.com/Wb6TxVJQrS

A year on from the publication of the Care Review, First Minister @NicolaSturgeon has reaffirmed her commitment to delivering the changes needed to improve the lives of care experienced people #KeepThePromise pic.twitter.com/1y9gOn3HXf

Scotland is committed to ensuring that we use the full potential of the Coalition to deliver ambitious and deliverable plans for a just transition to net zero. We must work together to address the climate crisis and build a greener, fairer and more equal world. pic.twitter.com/hXFnBw0THV

First Minister @NicolaSturgeon has spoken to Minister-President Kretschmann from @RegierungBW to discuss the handover of the European co-chair of the #Under2Coalition from Baden-Württemberg to Scotland as well as a number of other shared priorities. pic.twitter.com/8OqDPpmu6f

“We must continue to try to be the light, wherever there is darkness.” On #HolocaustMemorialDay First Minister @NicolaSturgeon has honoured the victims of the Holocaust and subsequent genocides, and called for everyone to build a safer, more peaceful world. pic.twitter.com/5cOE8KIHoe

FM @NicolaSturgeon has met the National Advisory Council on Women and Girls to discuss the latest @NACWGScot report into tackling gender inequality in Scotland. Check out the full report bit.ly/2020NACWGReport #GenerationEqual pic.twitter.com/adbqX3gNuw

The Scottish Government has lodged a Legislative Consent Memorandum (LCM) with the Scottish Parliament, recommending that consent cannot be given to the UK Government’s “inadequate and damaging” Brexit deal with the EU. More information: gov.scot/news/brexit-de… pic.twitter.com/aF6hfFmDqX

Follow @ScotGovFM

JOIN IN

First Minister’s Postbag

Share your thoughts with the First Minister.

GET IN TOUCH

Related articles:

Income tax proposals

FM and DFM with Glasgow Children's Hospital Charity

Read More

Council Tax reform facts

Almost 140,000 children in 77,000 low income households to benefit by £173 per year

Read More

Council tax reform

FM Nicola Sturgeon cooks with S1 pupils at Lasswade High School

Read More

JOIN IN

Follow us online

For wider Scottish Government News please go to www.gov.scot

twitter
YouTube
flickr
instagram
facebook

Copyright Scottish Government 2021

  • About the site
  • Privacy Policy and Content Disclaimer
  • Cookies
  • Accessibility
  • Rules of engagement
The Scottish Government

Change Cookie Settings

twitterYouTubeflickrinstagramfacebook
  • Home
  • News
  • Join In
  • People
  • About