Home Business News Unveiled: Scottish income tax changes

Unveiled: Scottish income tax changes

14th Dec 17 3:31 pm

A new tax band of 21p on earnings between £24,000 – £44,273

Scotland’s government announced today that it will increase income tax rates for higher earners to help relieve strain on the public finances and fund a pay rise for those in the public sector.

The budget, set out by finance minister Derek Mackay, offered public sector workers earnings less than £30,000 ($40,242) a year a 3 per cent pay rise, and those earning more than that a 2 per cent pay rise.

The move, he said, will mean no one earning less than £33,000 in Scotland will pay more tax. While those earning above that figure would only pay a “proportionate amount more” than they currently do.

Mackay also announced a number of changes to income tax in his draft Budget for 2018-19, including increasing the charge to 21p for those earning more than £24,000 a year.

Mackay insisted the changes will raise an additional £164m, which would be used to “mitigate UK budget cuts, protect our NHS and other public services, support our economy and tackle inequality in our society, we have decided to reform income tax in Scotland.”

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