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Proposed legislation to implement Scotland’s budget for 2021-22 has passed its first parliamentary hurdle.

MSPs voted to endorse the general principles of the Budget Bill at Stage 1, approving the Scottish Rate Resolution which sets all income tax rates and bands.

The budget includes a 12 month extension of 100% rates relief for retail, hospitality, leisure, aviation and newspaper businesses, £1.1bn for jobs and skills, record spending for health services, an £11.6bn settlement for local government and new funding to tackle climate change.

Finance Secretary Kate Forbes said: “I have sought to engage constructively to deliver a budget that meets the needs of the nation – we have listened and we have delivered on key asks.

“The vote sends a signal that this parliament can work together during the national emergency to support our economy and public services, continue the vaccination programme and drive our recovery from the pandemic.

She added: “No Scottish taxpayer will pay more income tax in 2021-22 than they do now on their current income and, for a fourth consecutive year, more than half of Scottish income taxpayers will pay less tax than if they lived anywhere else in the UK.”

The Scottish income tax rates and bands for 2021-2022 are as follows:

Scottish Income Tax rate

Scottish Bands

Scottish Starter rate 19%

Over £12,570 – £14,667

Scottish Basic rate 20%

Over £14,667 – £25,296

Scottish Intermediate rate 21%

Over £25,296 – £43,662

Scottish Higher rate 41%

Over £43,662 – £150,000

Scottish Top rate 46%

Over £150,000 and above



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Post Author: EDONS