Murray Beith Murray LLP is a leading Scottish private client law firm.
For 175 years we have specialised in meeting the legal, financial and administrative needs of individuals and families, family trusts, charities and private companies.
Murray Beith Murray LLP is a leading Scottish private client law firm.
For 175 years we have specialised in meeting the legal, financial and administrative needs of individuals and families, family trusts, charities and private companies.
Earlier today, the Scottish Finance Secretary Kate Forbes told MSPs that this was a time for "stability, certainty and targeted support".
The budget includes £1.1bn of spending on jobs and employment support, extra cash for the health service to tackle the Covid-19 pandemic, and £3.1bn for education.
The Scottish Parliament has the power to set Income Tax rates and bands for non savings and non dividend income of Scottish taxpayers. However, responsibility for defining the Income Tax base and the tax-free Personal Allowance, remains reserved to the UK Parliament. Income Tax on savings and dividend income is also reserved and continues to be paid to the UK Government.
Kate Forbes announced that Income Tax rates will remain unchanged and the starter and basic rate bands, as well as the higher rate threshold, will increase by CPI inflation (0.5%). The top rate threshold will remain at £150,000 and will not increase with inflation.
Whilst there will be no tax cuts or tax rises, as a result of 4 out of the 5 bands increasing with inflation, all Scottish taxpayers will pay slightly less Income Tax in 2021/2022 than in 2020/2021 (current tax year), based on their current income.
|
Scottish Income Tax Policy Proposals 2021/2022 |
||
|
Band |
Income Range |
Rate |
|
Starter Rate |
Over £12,570 - £14,667 |
19% |
|
Basic Rate |
Over £14,667 - £25,296 |
20% |
|
Intermediate Rate |
Over £25,296 - £43,662 |
21% |
|
Higher Rate |
Over £43,662 - £150,000* |
41% |
|
Top Rate |
Over £150,000** |
46% |
* Assumes individuals are in receipt of the Standard UK Personal Allowance
** The Top Rate remains at 2020-21 level. Those earning more than £100,000 will see their Personal Allowance reduced by £1 for every £2 earned over £100,000
Murray Beith Murray will publish a further update tomorrow.
Murray Beith Murray is a private client practice, made up of specialist lawyers from a variety of legal disciplines, and we are able to advise on a range of legal matters. If you would like to speak to one of our expert lawyers please complete our enquiry form or call us on 0131 225 1200.
Murray Beith Murray was established in 1849, as advisors for generations of clients, committed to our values of integrity, expertise and trust. This aim and these values continue to this day as does our commitment to be here when you need us.
