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Where Taxpayers and Advisers Meet
Devolved Taxes - Scottish and Welsh Income Tax 2020/21
10/02/2020, by Lee Sharpe, Tax News - Budgets and Autumn Statements
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Scottish Income Tax rates and bands - the devolved part that covers non-dividend, non-savings income - is the most important source of revenue that Scotland can control under the devolved taxes regime.

Readers may recall that Holyrood is not best pleased when it comes to Westminster's continued delays to the 2020/21 UK-wide Budget. Scotland therefore found itself having to publish provisional figures last week for 2020/21, based on no more than the assumption that Westminster will maintain the UK tax-free Personal Allowance at £12,500: 

Bands

Band name

Rate

£12,501 - £14,585

Starter Rate

19%

£14,586 - £25,158

Scottish Basic Rate

20%

£25,159 - £43,430

Intermediate Rate

21%

£43,431 - £150,000

Higher Rate

41%

Above £150,000

Top Rate

46%

Scotland broadly continues to tease a little more Income Tax out of all but the lowest earners when compared to those not fortunate to have a Scottish main residence address. The rates and bands have essentially remained the same, but some of the thresholds have increased a little against 2019/20.

Wales is rather more straight forward, having established its position lndependently of Westminster's procrastination, and deciding in its draft Budget Statement of 16 December 2019 that there would be no deviation from the "rest-of-UK" Income Tax rates and bands for 2020/21.

About The Author

Lee is TaxationWeb's Articles & News Editor and writes for TaxationWeb. He is a Chartered Tax Adviser with experience of advising individuals and owner-managed businesses over a broad spectrum of tax matters.
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