Chapter 10 Scottish and Welsh Taxpayers

Question 1

Scottish and welsh taxpayers

Answer 1

Welsh taxpayers like Scottish taxpayers pay Welsh rates of income tax, however they currently pay the same rates of income tax as non-Scottish taxpayers. For Scotland five rates of tax apply to non-savings income:
• Starter rate 19% (first £2,049)
• basic rate 20% (£2,050 – 12,444)
• intermediate rate 21% (£12,445 – 30,930)
• higher rate 41% (£30,931 – 150,000)
• top rate 46% (£150,000 plus)
the personal allowance is still the same for Scottish taxpayers and they still pay savings and dividends income in the same way as non-Scottish taxpayers. For the marriage allowance Scottish taxpayers are only eligible to receive the relief is they pay tax at the intermediate rate or less. For gift aid donations the basic, intermediate and higher rate limits will be extended by the gross amount. The starter rate band is not extended.