Talk to the Taxperts

01382 312100

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.

Latest News

View all latest news

February 9, 2024

Let Me Entertain You!

A client recently contacted us to ask about the tax implications for booking tickets for the Six Nations Rugby Championship. He was considering inviting both clients and staff…

January 3, 2024

New Year, New Tax Changes

With the start of another year, it’s time to think about the changes that lie ahead. Instead of skipping ahead to 1 April or 5 April, this year…

Download our EQ app and keep up to date with tax news, changes and have access to our EQ Portal, tax calculators and key tax dates at your fingertips. Click on the relevant button on your device to download our free app.

Visit EQ Accountants Visit EQ Accountants

Explore the full range of EQ Expertise