Scottish Budget passed – implications for Gift Aid and pension tax relief
On 14 December 2017 the Scottish Government Budget announced new Scottish Income Tax rates and bands for the 2018 to 2019 tax year. These were confirmed on 20 February 2018, and will apply from 6 April 2018.
| Annual salary | Band name | Rates (%) |
| £11,850 – £13,850 | Starter | 19 |
| £13,850 – £24,000 | Basic | 20 |
| £24,000 – £44,273 | Intermediate | 21 |
| £44,273 – £150,000 | Higher | 41 |
| Above £150,000 | Top | 46 |
The Income Tax (Pay As You Earn) (Amendment) Regulations 2018 have also now been published, making the necessary amendments to implement these changes.
A summary of the implications for Gift Aid, including comment from HMRC can be read here.
HMRC has been working closely with the Scottish Government and with pension scheme administrators to assess the implications of these changes for pension tax relief and to clarify how the mechanisms for providing that relief will operate in respect of Scottish taxpayers. Read HMRC guidance on this issue here.
HMRC has also published general guidance for employers on which tax codes to use in advance of the new tax year from 6 April – this includes details of codes for the new Scottish tax bands.