Scottish rates of income tax were set by MSPs for the first time yesterday, keeping the same tax rates as in the rest of the United Kingdom but with a lower threshold at which the higher rate will take effect.
Ministers had proposed to raise the threshold in line with inflation rather than the bigger increase to £45,000 to take effect south of the border, but agreed on no change from the current £43,000 threshold as part of the deal with the Greens to ensure that the Parliament passed the budget.
The Scottish Rate Resolution passed by Holyrood sets:
- the Scottish basic rate at 20%, charged on income (above the personal tax allowance of £11,500) up to a Scottish basic rate limit of £31,500;
- a Scottish higher rate of 40%, charged on income above the Scottish basic rate limit and up to £150,000; and
- a Scottish additional rate of 45%, charged on income above that higher rate limit.
The resolution was passed by 61 votes to 55, with the six Green MSPs abstaining.
