On Tuesday 19th December 2023, the Scottish Budget for 2024-2025 was presented to the Scottish Parliament.
The Finance Minister Shona Robison announced that a new tax band of 45% will be created for higher earners, which will apply to earnings between £75,000 and £125,140. She also stated that the top rate for those earning over £125,140 will increase by 1p to 48p in the pound. However, there are no changes to tax rates for starter (19%), basic (20%), intermediate (21%) and higher (42%) .
The bands for the starter and basic rate will be increased by inflation, but the threshold for paying the higher rate tax (42%) is to be kept at £43,662.
2024-25 | ||
| Starter | £12,571 – £14,876 | 19% |
| Basic | £14,877 – £26,561 | 20% |
| Intermediate | £26,562 – £43,662 | 21% |
| Higher | £43,663 – £75,000 | 42% |
| Advanced | £75,001 – £125,140* | 45% |
| Top | Above £125,140 | 48% |
*Under the UK Government’s Personal Allowance policy, those earning more than £100,000 will see their Personal Allowance reduced by £1 for every £2 earned over £100,000.
The UK Government confirmed in the 2023 Autumn Statement that the UK-wide Personal Allowance will remain frozen at £12,750.