The Scottish Budget introduces a new advanced rate income tax band for earnings between £75,000 and £125,140.
19 December 2023
For financial advisers - compiled by our team of experts, qualified in pensions, taxation, trusts and wealth transfer.
19 December 2023
A new 45% tax band will be introduced for Scottish taxpayers earning between £75,000 and £125,140 from April 2024. This represents a 3% increase for these taxpayers would previously have been taxed at the higher rate of 42%. The top rate of tax, paid by those earning more than £125,140, will also rise from 47% to 48%.
It was also confirmed that the current thresholds for the higher and top bands - £43,663 and £125,140 respectively will remain frozen with starter and basic rate thresholds being increased by inflation.
| New income tax levels in Scotland 2024-25 | ||
| Band | Earnings | Rate |
| Personal allowance | Under £12,570 | 0 |
| Starter rate | £12,571 - £14,876 | 19% |
| Scottish basic rate | £14,877 - £26,561 | 20% |
| Intermediate rate | £26,562 - £43,662 | 21% |
| Higher rate | £43,663 - £75,000 | 42% |
| Advanced rate | £75,001 - £125,140 | 45% |
| Top rate | Over £125,140 | 48% |
There were no tax changes announced in the Welsh Budget with Wales continuing not to use their devolved powers and to retain the rest of the UK tax rates and bands.