Scottish Rate of Income Tax for 2016/17

22nd March 2016

The Scottish Rate of Income Tax (SRIT) will come into force from 6 April 2016 next month.

The Scottish Parliament has already agreed with the Deputy First Minister's proposal that Scottish taxpayers will not pay an increased amount of income tax next year.

SRIT has been set at 10p, which means the tax paid by Scottish residents in 2016/17 will be the same as those taxpayers in the rest of the UK.

SRIT is the last of three tax powers devolved to the Scottish Parliament under the Scotland Act 2012 following the Land and Buildings Transaction Tax and the Scottish Landfill Tax.

Deputy First Minister John Swinney said:The income tax powers we currently have do not allow us to make income tax fairer, and I am not prepared to inflict an additional burden on the poorest taxpayers.

Taxes should be proportionate to the ability to pay. Where we have the freedom to shape a taxation system that is fair and proportionate to the ability to pay, we have created a tax system, through the Land and Buildings Transactions Tax (LBTT) that is progressive and helps those who most need it.

A rate of 10 pence for Scottish rate of income tax protects those on the lowest taxable incomes and ensures Scottish taxpayers are not penalised as we introduce this historic new tax regime.