Summary
The Scottish government will not change its income tax rates or introduce new tax bands in the next year's budget, according to Finance Secretary Shona Robison. Despite this, adjustments to the thresholds might result in higher earners paying more taxes. The decision aims to maintain stability amidst changes announced in the UK Budget by Chancellor Rachel Reeves.
Key Facts
- The Scottish government will keep income tax rates and the number of tax bands the same next year.
- Higher earners in Scotland might pay more due to changes in income thresholds.
- Scotland uses a different income tax system than the rest of the UK, with seven tax bands instead of four.
- The Scottish government aims for most Scots to pay less income tax than those in the rest of the UK.
- Tax bands for lower earners are expected to rise by at least the rate of inflation.
- Chancellor Rachel Reeves announced the UK Budget, which affects how much Scots pay in National Insurance and income tax.
- A financial body, the Scottish Fiscal Commission, highlighted the complexities in comparing tax figures between Scotland and the rest of the UK.
