Scotland freezes income tax rates after finance secretary resigns

March 2020

The Scottish Government has decided to freeze all income tax rates, plus the higher and top-rate thresholds, for 2020/21.

Assuming the personal allowance remains at £12,500, only the basic and intermediate thresholds in Scotland are set to rise in line with inflation.

A starter-rate of 19% will apply on earnings between £12,501 and £14,585, while the basic-rate of 20% will then be paid on earnings up to £25,158.

An intermediate-rate of 21% will then apply up to £43,430,with a higher-rate of 41% kicking in on earnings up to £150,000.

Scotland’s top-rate of 46% then applies to those earning more than £150,000 in 2020/21.

Scotland’s public finance minister Kate Forbes stepped intothe breach to deliver the speech, following the shock resignation of Finance Secretary Derek Mackay.

Forbes said:

“More than half of taxpayers pay less income tax in Scotland than elsewhere in the UK.

“Based on commitments made by the UK Government in their Autumn Budget 2018, we do not expect any further increase in income tax divergence between Scotland and the rest of the UK this year.

“It is now up to the UK Government to ensure that divergence does not increase when they deliver their Budget on 11 March.”

Talk to us about income tax.

Business news
Finsbury Robinson

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare.

Contact Us

Sign up to our
Monthly Business Newsletter

Sign up to receive our monthly Business Newsletter that will keep you up to date with everything going on in accounting, tax, and finance. 

Finsbury Robinson Services
R&D Tax
Has your company undertaken
any R&D related activities?
Find OUt More
Affected by the
Let Property Campaign?
Find OUt More
Check out our fixed price
Accounting and Business Packages
Find OUt More
Free Book-keeping
Software for all Clients
Find OUt More
Free Auto Enrolment Pensions Advice
Calculate your Contribution!
Find OUt More
Are you aware of the Capital Gains Tax Changes coming?
GDPR Compliance
Find OUt More

Sign up to our Monthly Business Newsletter

Find News Articles by Category

News HomeIncome Tax
Scotland freezes income tax rates after finance secretary resigns
To get in touch use our Quick Contact Bar:

Monday                 8:30AM – 5:30PM
Tuesday                8:30AM – 5:30PM
Wednesday          8:30AM – 5:30PM
Thursday              8:30AM – 5:30PM
Friday                 9:00AM – 12:30PM
Saturday                                 Closed
Sunday                                   Closed

Finsbury Robinson
237 Westcombe Hill