Tax rates to rise for higher earners in Scotlandon December 15, 2022 at 12:52 pm

- Advertisement -
- Advertisement -
- Advertisement -
- Advertisement -

The higher rate of tax from 41p to 42p in the pound and the top rate from 46p to 47p.

nicola sturgeon and john swinneyImage source, PA Media

Income tax rates for higher earners are expected to be increased in Scotland for the next financial year.

The BBC understands the deputy first minister, John Swinney, will announce the changes in his budget statement.

He is expected to put up the higher rate of tax from 41p to 42p in the pound and to increase the top rate from 46p to 47p.

The tax threshold for the top rate is also expected to be lowered from £150,000 to closer to £125,000.

This change has already been announced for other parts of the UK by the Chancellor.

The Scottish government has frozen the threshold for the 41p higher rate in recent years – it currently begins at £43,663 in Scotland, compared to £50,271 elsewhere in the UK.

However, it not thought likely that the rate that is paid by lower earners will rise, with First Minister Nicola Sturgeon previously saying this would be counterproductive in a cost of living crisis.

Mr Swinney is due to begin his budget statement in the Scottish Parliament at about 14:25.

Income tax bands in Scotland

The changes to Scotland’s income tax rates are designed to increase the revenue the Scottish government generates so it can spend more on key public services.

Unions and anti-poverty campaigners had been demanding tax increases for higher earners, while the Conservatives and some business voices have warned that tax rises could be a drag on economic recovery.

The changes will also widen the divergence in tax policy between Scotland and the rest of the UK.

And they will be a significant departure from the SNP’s manifesto aim not to alter income tax rates for the duration of this parliament.

- Advertisement -

Discover

Sponsor

Latest

Storm Henk: London Eye passenger describes roof hatch scareon January 3, 2024 at 12:50 pm

David Nock and his family were mid-ride when a hatch blew open in their pod during Storm Henk.This video can not be playedTo play...

Boy admits manslaughter of man he tripped up in Hanwellon November 2, 2023 at 12:08 pm

The 16-year-old caused Jerald Netto to fall to the ground, where he suffered a heart attack.The 16-year-old caused Jerald Netto to fall to the...

Delilah: Song ban opens debate on depictions of violence against womenon February 4, 2023 at 7:37 am

Comparisons have been made over how gendered violence is shown across different artforms.Comparisons have been made over how gendered violence is shown across different...

The Lathums: Wigan indie band score debut number one albumon October 1, 2021 at 4:45 pm

The Wigan group are the latest in a string of British bands to have topped the charts this year.

Police arrest suspect in New York subway shootingon April 13, 2022 at 6:37 pm

A massive manhunt had been launched following a shooting in a Brooklyn subway on Tuesday morning.Image source, NYPDPolice in New York City have arrested...