Scottish Income Tax and the Scottish Rate Resolution

The personal allowance

Some income is tax-free. The standard Personal Allowance is the amount of income you don’t have to pay tax on. The Personal Allowance remains reserved to the UK Government. 

Income tax in Scotland

The Scottish Parliament can set the rates and bands of non-savings, non-dividend income tax in Scotland. This power was devolved in the Scotland Act 2016.

Income tax in Scotland continues to be administered by HMRC. The Scottish Government announced the proposed income tax rates and bands for 2019-20 on 12 December 2018. More information can be found on the Scottish Government website. Read the motion setting the Income taxe rates for 2019-20. You can also see the Offical Report of the Scottish Rate Resolution debate on 19 February 2019.

The Scottish Rate Resolution (SSR)

Proposed Scottish income tax rates and bands are not part of the Budget Bill. They are set out by the Scottish Government in a Scottish Rate Resolution (SRR). This is separate from, but runs parallel to, the Budget Bill.

A Scottish Government motion to agree the SRR needs to be approved by Members of the Scottish Parliament (MSPs) in the Scottish Parliament's Chamber before stage 3 of the Budget Bill. This year the debate on the Scottish Rate Resolution is scheduled for 19 February 2019. If passed, the agreed rate will apply from April.

The Scottish Parliament will vote on the final budget proposals for the next financial year in February.


This website is using cookies.
We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we’ll assume that you are happy to receive all cookies on this website.