ICAS releases latest edition of ICAS Guide to Scottish Taxes
By Justine Riccomini, Head of Taxation (Scottish Taxes, Employment and ICAS Tax Community)
16 April 2021
Justine Riccomini explains what readers will find in the latest edition of the ICAS Guide to Scottish Taxes.
ICAS has published a revised Guide to Scottish Taxes. It is based on the legislation in place in March 2021 and includes the five tax rates and bands that are in place for Scottish taxpayers in 2021/22.
Scotland’s taxes are increasingly diverging from the rest of the UK, and there are practical and administrative considerations that taxpayers, tax advisers, and the accounting profession need to be aware of.
The guide discusses:
- the background to Scottish taxes;
- public finances in Scotland;
- which tax authority is responsible for which tax; and
- a brief outline of each Scottish tax.
It is based on the legislation in place in March 2021 and includes the five tax rates and bands that are in place for Scottish taxpayers in 2021/22.
| Income Tax Bands | 2021-22* |
|---|---|
| £ | |
| Starter Rate – 19% | 12,570 * - 14,667 |
| Scottish Basic Rate – 20% | 14,668 – 25,296 |
| Intermediate rate – 21% | 25,297 – 43,662 |
| Higher Rate – 41% | 43,663 – 150,000** |
| Top Rate – 46% | Over £150,000** |
*Where an individual is entitled to the standard UK Personal Allowance.
**As with the rest of the UK, those with earnings exceeding £100,000 will suffer a Personal Allowance reduction of £1 for every £2 earned over £100,000. Therefore, when income reaches £125,140 the personal allowance is fully withdrawn.
