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HMRC have published a technical note that sets out the government’s policy intentions in areas where the Scottish income tax rate-setting power interacts with other areas of the income tax system.
It confirms that Scottish rate of income tax will be charged on the non-savings income of those defined as Scottish taxpayers.
The note clarifies that the Scottish parliament sets only one rate (the Scottish rate), but this effectively gives rise to three: the Scottish basic rate; the Scottish higher rate; and the Scottish additional rate.
Together, the three rates will be referred to as the Scottish main rates.
It also states that as the Scottish rate of income tax is not a discrete tax it remains covered by existing UK double taxation agreements.
Comments should be emailed no later than 31 August.
