Scottish Budget: Higher earners to pay more income tax |
Higher earners in Scotland will face higher taxes as the government seeks to reduce cuts to public services and fund a council tax freeze. Scotland's finance secretary, Shona Robison, announced the introduction of a new 45p tax band for those earning above £75,000, with the top rate for those earning above £125,140 rising from 47% to 48%. Robison claimed that the tax increases, along with freezing tax thresholds for intermediate and higher rates, will raise £1.5bn more than if Scotland had matched rates in the rest of the UK. Sean Cockburn, chairman of the Chartered Institute of Taxation's Scottish technical committee, raised concerns that the gaps between Holyrood and Westminster on income tax will widen if the UK Government cuts income tax in its Spring Budget. He said: “The Scottish government's income tax plans increase divergence between higher earners in Scotland and the rest of the UK and we cannot rule out the possibility that divergence could widen further in the spring.” Bruce Cartwright, chief executive of the Institute of Chartered Accountants of Scotland, said: “The Scottish government's budget is both short-sighted and fails to drive sustained economic growth.” |
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