Scottish complication with savings allowance & higher rate tax

[Learner77]

I've drafted a tax return using HMR&C's online system. Earnings of £60K, pension net £13,600, gross equivalent £17K, bank interest £1400. The HMR&C calculation gives the basic rate savings allowance of £1,000 then taxes the balance at 40%.

This seems to be using the Scottish tax rate bands as follows:
£60K minus £17K for pension and £11,850 for 2018/19 personal allowance leaves £31,150 taxable earned income. This leaves £430 bank interest in the Scottish basic rate band up to £31,580, the remaining £570 of the £1,000 savings allowance is taxable at 0% and the balance of bank interest is taxable at the UK tax rate of 40%.

BUT isn't bank interest supposed to be non-devolved for tax purposes? In other words isn't Scottish bank interest supposed to be taxed using UK tax bands as well as tax rates? In the above scenario, all of the bank interest would fall within the UK basic rate band up to £34,500 and no higher rate tax would be payable. I'm confused!

[darthblingbling]

Without looking at the calcs, briefly thinking I think there's an exception for Scottish tax payers in this scenario where they'll need to submit a return by post

[darthblingbling]

Believe it's id 96 on the exception list as HMRC software does not extend the UK band but only the Scottish band in the above scenario

[Learner77]

Thanks for this reply. This is the best answer I've had after loads of searching! Could you tell me where to find the exception list? Thanks again.

[Learner77]

I've found the exclusion list. Thanks so much for your help. I'd never have found the answer without you!

[darthblingbling]

Exclusion list sorry yes, not exception haha.

Sorry I was typing that up on my phone while on the train.

[etf]

I'm going for an eye test next week which is just as well because, for me, reading the link below is impossible using the current scale:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/842541/2018-19-exc-indiv-v2.0.pdf

Perhaps it should be compulsory for any future Chancellor to take an exam to demonstrate a full understanding of this list of exclusions in the hope that it may persuade them not to further complicate our tax system.

Even better, HMRC should be open to a £1,600 penalty charge by anyone affected by a listed exclusion. After all tribunal judges have indicated they do not agree that tax law is so complex that they cannot be expected to understand it (sounds like this measure would go down well in Scotland).

Perhaps the above two suggestions in the long run would help achieve a required goal of tax simplification.

PS Darthblingbling definitely deserves a medal for having memorised this exclusion and Learner77 for having spotted the problem in the first place.