New calls for the abolition of Scottish tax brackets and alignment with the British government

New calls for the abolition of Scottish tax brackets and alignment with the British government

More than 8,000 people have signed a new online petition calling for Scotland’s tax rates to be abolished and brought into line with those set by the UK government. Scotland currently has six tax brackets, compared to just three in other parts of the UK.

Petition author Sam Grossick argues that the additional tax rates create a “wider gap between thresholds” north of the border compared to the rest of the UK, adding that it has created a “more complex and unfair tax system” in Scotland.

Changes to income tax in Scotland announced in last year’s Budget came into effect on 1 April, introducing a new rate of 45p on incomes between £75,000 and £125,140. The top rate – levied on incomes above £125,140 – was increased by one penny to 48p.

Previous increases mean that all workers in Scotland earning more than £28,000 a year pay more than anywhere else in the UK.

The petition ‘Remove the Scottish Parliament’s power to vary income tax rates’ has been published on the Petitions Parliament website.

It states: “The powers in relation to income tax conferred on the Scottish Parliament under the Scotland Act 2012 must be repealed so that Scottish income tax rates can be brought back into line with the rates set by the UK Government.”

“The Scottish Government is allowing the gap between tax allowances in Scotland and the rest of the UK to continue to grow. We believe this has resulted in a more complex and unfair tax system and has created an ever-widening divide between the nations of the UK.”

If the petition reaches 10,000 signatures it would be entitled to a written response from the UK Government, but it is unlikely that the Government will comment on the Scottish Government’s decisions on devolved tax allowances. You can view the petition online here.

Scottish income tax thresholds

The table below shows the Scottish income tax rates for 2024/25 that you will pay in each band if you have a standard allowance of £12,570. You will get no allowance if you earn more than £125,140.

Season 2024/25

Taxable income

Scottish tax rate

Personal allowance

Up to £12,570

0%

Starter tariff

£12,571 to £14,876

19%

Basic tariff

£14,877 to £26,561

20%

Medium tariff

£26,562 to £43,662

21%

Higher rate

£43,663 to £75,000

42%

Extended tariff

£75,001 to £125,140

45%

Top price

over 125,140 €

48%

Tax thresholds in England and Wales 2024/25

Season 2024/25

Taxable income

British tax ratt

Personal allowance

Up to £12,570

0%

Base price

£12,571 to £50,270

20%

Higher rate

£50,271 to £125,140

40%

Additional price

Over 125,140 €

45%

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