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The 2021/22 Scottish Income Tax Rates

Following parliamentary approval on 25 February 2021, the Scottish Income Tax (SIT) rates and bands for 2021 to 2022 were confirmed in advance of the Budget on 3 March 2021.

The tax relief claimed by pension funds or charities is set at 20%, irrespective of the rate the Scottish taxpayer is paying. Scottish taxpayers with a marginal tax rate of 21% or higher must claim additional tax relief on pension contributions or Gift Aid donations by contacting HMRC, or through their self-assessment tax return.

British troops who are subject to SIT receive an annual payment of up to £2,200 per year to compensate them for having to pay higher income tax when living in Scotland.

The bandings and rates for 2021/22 coming into effect from 6 April 2021 are as follows:-

Band nameBandRate
Starter RateOver £12,570* - £14,66719%
Scottish Basic RateOver £14,667 - £25,29620%
Intermediate RateOver £25,296 - £43,66221%
Higher RateOver £43,662 - £150,000**41%
Top RateAbove £150,000**46%
* assumes individuals are in receipt of the Standard UK Personal Allowance.
** those earning more than £100,000 will see their Personal Allowance reduced by £1 for every £2 earned over £100,000.

You can read more details on the Scottish Income Tax, with helpful documents to download, here.

For more information, or to discuss your own circumstances, get in touch with our Private Client Taxperts via [email protected] or call your local office.

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