MSP Welcomes Changes to Tax Bands

More than two-thirds of taxpayers will pay less on their current income this year under Scotland’s new tax bands.

Banffshire and Buchan Coast MSP Stewart Stevenson has welcomed the move as changes to the Higher and Top rate tax bands take effect from today (April 6th).

It also means there will be an additional £428million available in 2018/19 to invest in vital public services and the economy.

And under the new system, low earning taxpayers are protected through the introduction of a new Starter Rate of tax.

The income tax system will also be more progressive, raising additional revenue through the introduction of a new Intermediate Rate of 21% and increases to the Higher and Top Rates, to 41% and 46%.

As a result of these changes, and the increase in the personal allowance, all taxpayers earning up to £33,000 - 70% of all taxpayers - will be protected from any increase.

Those earning more than £33,000 will pay only a proportionate amount more.

A majority of taxpayers (55%) in Scotland will pay less income tax in 2018-19 than they would in the rest of the UK, while those who can afford to pay more will make a marginally higher contribution to support public services and investment in the economy.

Commenting, Stewart Stevenson MSP said:

“The new income rates and bands will make the system more progressive.

“As well as this, they will help to deliver additional revenues to invest in public services and the economy.

“These measures will help to ensure the North-East and Scotland as a whole will be the fairest taxed part of the UK.”