Self Assessment Manual

SAM101380 - Records: maintain taxpayer record: Scottish income tax

Background
Definition of a Scottish customer
Exceptions
Terminology

Background

Scottish income tax was introduced by the Scotland Act 2012. It is charged on the non-savings and non-dividend income of those defined as Scottish customers and started in April 2016.

The definition of a Scottish customer is focused on where an individual lives, or resides, in the course of a tax year. Scottish customer status applies for a whole tax year. It is not possible to be a Scottish customer for part of a tax year therefore it is important that when creating a new SA record the 바카라 사이트˜Base address effective from바카라 사이트™ box is completed. Likewise when recording a change of address, the date of the change must be recorded. Further information on this subject can be found at SAM101270 바카라 사이트˜Maintaining addresses바카라 사이트™ and how to record the change in the Customer Business Guide (TBS) at TBSG055 바카라 사이트˜Enter or amend address바카라 사이트™.

For tax years 2016-2017 onwards, the Scottish customer (STp) status can be seen in the `Tax year overview바카라 사이트™ screen in `View L & P바카라 사이트™ but the Customer Business service (TBS) should be used to view the Scottish Main place of residence status (SMPR) start and end dates.

Definition of a Scottish customer

For an individual to be a Scottish customer, they must be resident in the UK for tax purposes and have their sole or main place of residence in Scotland.

Individuals who have more than one place of residence in the UK need to determine which of these has been their main place of residence for the longest period in a tax year 바카라 사이트“ if this is in Scotland, they are a Scottish customer. For example, if an individual with a single place of residence moves house into, or out of, Scotland part way through a tax year, deciding whether they will be a Scottish customer in that year or not will depend on which house is their main place of residence for the longer amount of time.

Individuals who cannot identify a main place of residence will need to count the days they spend in Scotland and the days they spent in other parts of the UK. For example, if they spend 125 days in Scotland, 120 days in Wales and 120 days in England/Northern Ireland, as they have spent the most time in Scotland, they will be a Scottish customer. Where this applies, they will be treated as a Scottish customer for the whole year.

Note: Only HMRC can decide an individual바카라 사이트™s customer status. An employer cannot make this decision or inform HMRC of an employee바카라 사이트™s customer status

Exceptions

There are separate rules which apply to Scottish Parliamentarians. All Scottish parliamentarians will be Scottish customers wherever they live, and an individual is a Scottish Parliamentarian for a tax year if for the whole year, or any part of that year, they are:-

• A Member of Parliament (MP) for a constituency in Scotland
• A Member of the European Parliament (MEP) for Scotland
• A Member of the Scottish Parliament (MSP)

Note: Investment income will be taxed at UK rates regardless of an individual바카라 사이트™s status and Charities will claim Gift Aid at the UK basic rate. Higher rate and additional rate Scottish customers will reclaim Gift Aid at the Scottish rates.

Terminology

Term/Word	Meaning
Scottish Main Place of Residence (SMPR)	If Scottish customers reside in Scotland for more than 183 days in a year they will be a Scottish resident and liable to Scottish tax. Where a customer may work in Scotland, and therefore be in Scotland for more than the 183 days per year, they may not necessarily be a Scottish resident. When a customer has more than one home residency, residency will be established by where they are registered for GP바카라 사이트™s, dentists and where their family home is. Residency guidance from Central Policy will also provide supplementary information
Address Effective from date	This is an important element from 6 April 2016 and will establish the point where a customer becomes a Scottish customer dependent on the date they class their main place of residence as a Scottish address
S prefix for tax code	From April 2016 all Scottish Customers will be identified by an S prefix on their tax code. The notification letter will provide information to customers around this
Scottish income tax	The rate that the Scottish Parliament sets.
Scottish customer (STp)	Person liable to pay the Scottish rate of income tax
Scottish starter rate	2018-19 onwards - the rate set by the Scottish 바카라 사이트 that is below the basic rate. 100% goes to the Scottish 바카라 사이트
Scottish basic rate	2016-17 - the UK basic rate of income tax, less ten percentage points, plus the Scottish rate of income tax / 2017-18 onwards - the rate set by the Scottish 바카라 사이트. 100% goes to the Scottish 바카라 사이트
Scottish intermediate rate	2018-19 onwards - the rate set by the Scottish 바카라 사이트 that is between the basic rate and the higher rate. 100% goes to the Scottish 바카라 사이트
Scottish higher rate	2016-17 - the UK higher rate of income tax, less ten percentage points, plus the Scottish rate of income tax / 2017-18 onwards - the rate set by the Scottish 바카라 사이트. 100% goes to the Scottish 바카라 사이트
Scottish additional rate	The UK additional rate of income tax, less ten percentage points, plus the Scottish rate of income tax / 2017-18 onwards - the rate set by the Scottish 바카라 사이트. 100% goes to the Scottish 바카라 사이트
Scottish main rates	Collectively, the Scottish basic rate, the Scottish higher rate and the Scottish additional rate of income tax.
The main rates of income tax	Collectively, the UK basic rate, the UK higher rate and the UK additional rate of income tax

Further Scottish Income Tax Powers

 The Scotland Act 2012 gave the Scottish 바카라 사이트 new powers to apply a rate of income tax paid on non-savings and non-dividend income by Scottish customers from April 2016. The Personal Allowance is set by UK 바카라 사이트.

Scotland Act 2016 give Scotland further income tax powers, so from April 2017 the Scottish 바카라 사이트 were able to set its own income tax rates and bands annually. The Scottish 바카라 사이트 will receive 100% of Scottish income tax (SIT) collected by HMRC on its behalf.

2024-25 Scottish income tax rates

A new rate was introduced for 2024-25- Advanced rate

Scottish income tax rates	Scottish bands
Scottish Starter Rate - 19%	£1 up to £2,306*Â
Basic Rate - 20%	£2,307 up to £13,991
Intermediate Rate - 21%	£13,992 up to £31,092
Higher Rate - 41%	£31,093 up to £62,430
Advanced Rate - 45%	£62,431 up to £125140
Top Rate - 46%	£125,141** and above

*Assumes in receipt of Personal Allowance

** Personal Allowance is reduced by £1 for every £2 earned over £100,000

2023-24 Scottish income tax rates

Scottish income tax rates	Scottish bands
Scottish Starter Rate - 19%	£1 up to £2,162* Â
Basic Rate - 20%	£2,163 up to £13,118
Intermediate Rate - 21%	£13,119 up to £31,092
Higher Rate - 41%	£31,093 up to £125,140
Top Rate - 46%	£125,141** and above

2022-23 Scottish income tax rates

Scottish income tax rates	Scottish bands
Scottish Starter Rate - 19%	£1 up to £2,162* Â
Basic Rate - 20%	£2,163 up to £13,118
Intermediate Rate - 21%	£13,119 up to £31,092
Higher Rate - 41%	£31,093 up to £150,000
Top Rate - 46%	£150,001** and above

2021-22 Scottish income tax rates

Scottish income tax rates	Scottish bands
Scottish Starter Rate - 19%	£1 up to £2,097* Â
Basic Rate - 20%	£2,098 up to £12,726
Intermediate Rate - 21%	£12,727 up to £31,092
Higher Rate- 41%	£31,093 up to £150,000
Top Rate - 46%	£150,001** and above

2020-21 Scottish income tax rates (from 11 May)

Scottish income tax rates	Scottish bands
Scottish Starter Rate - 19%	£1 up to £2,085*
Basic Rate - 20%	£2,086 up to £12,658
Intermediate Rate - 21%	£12,659 up to £30,930
Higher Rate - 41%	£30,931 up to £150,000
Top Rate - 46%	£150,001** and above

2019-20 Scottish income tax rates

Scottish income tax rates	Scottish bands
Scottish Starter Rate - 19%	£1 up to £2,049*
Basic Rate - 20%	£2,050 up to £12,444
Intermediate Rate - 21%	£12,445 up to £30,930
Higher Rate - 41%	£30,931 up to £150,000
Top Rate - 46%	£150,001** and above

2018-19 Scottish income tax rates

Three new rates were introduced for 2018-19 - Starter rate, Higher rate and Top rate.

Scottish income tax rates	Scottish bands
Scottish Starter Rate - 19%	£1 up to £2,000*
Basic Rate - 20%	£2,001 up to £12,150
Intermediate Rate - 21%	£12,151 up to £31,580
Higher Rate - 41%	£31,581 up to £150,000
Top Rate - 46%	£150,001** and above

2017-18 Scottish income tax rates

Scottish income tax rates	Scottish bands
Scottish Basic rate - 20%	£1 up to £31,500*
Scottish Higher rate - 40%	£31,501 up to £150,000
Scottish Additional Higher rate - 45%	£150,001** and above