What is Scottish income tax?

Updated on 21 February 2018

This section tells you about Scottish income tax and the Scottish rate of income tax (SRIT). Scottish taxpayers pay Scottish income tax from 6 April 2017 onwards and paid the SRIT during 2016/17.

Scottish Rate of Income Tax

Scottish income tax (SRIT in 2016/17) is not a separate tax, nor is it a devolved tax as such.

The Scottish Parliament has the power to affect the amount of income tax that Scottish taxpayers pay. To do this, the Scottish Parliament can set Scottish rates and bands (of income tax), which determine the rates of income tax payable by Scottish taxpayers on certain types of income. In 2016/17, the Scottish Parliament only had the power to set a single Scottish rate, which determined the overall rates of income tax payable by Scottish taxpayers on certain types of income.

HMRC administer and collect Scottish income tax (SRIT in 2016/17), using the Pay As You Earn (PAYE) and self assessment systems. This means that if you disagree with a decision concerning Scottish income tax (or SRIT), you must follow the HMRC appeal process. In addition, if you are unhappy with the service provided, you must follow HMRC’s complaints process.

Scottish income tax applies from 6 April 2017. For 2017/18, the rates and bands of Scottish income tax are as set out in the table below:

  Band Rate of Scottish income tax
Basic Rate £11,501* to £43,000 20%
Higher Rate £43,001 to £150,000 40%
Additional Rate Over £150,000 45%

*This assumes that you are entitled to the UK personal allowance. The basic rate band for Scottish income tax is £31,500 (11,500 + 31,500 = 43,000).

The SRIT applied during 2016/17. For 2016/17, the rate of the SRIT was 10%.

Broadly, Scottish income tax (SRIT in 2016/17) is payable by “Scottish taxpayers”, on their non-savings and non-dividend income. This section explores these points in more detail: