How could income tax decisions affect you?published at 14:19 GMT 13 January
Angus Cochrane
BBC Scotland News
Holyrood
ministers have used their devolved powers to create a distinct system from the
rest of the UK. Scotland has six tax bands, in contrast to England, Wales and
Northern Ireland, where there are just three.
In Scotland
people earning below about £30,000 pay slightly less tax than they would
elsewhere in the UK, with a maximum saving of about £28.
Above that
threshold they pay increasingly more. Someone on £50,000 in Scotland, which
includes some teachers and police officers, would typically pay about £1,500
more in tax than they would in the rest of the UK. That rises to about
£5,200 for someone on £125,000.
Although the
Scottish government can set its own bands and rates, the UK government
determines the point at which people start paying income tax.
SNP ministers
have previously pledged not to increase rates, but thresholds at which people
start paying higher tax rates could change.
Even if
thresholds do not change, taxpayers could be dragged into paying higher rates
as their wages increase.
