Explainers

Income Tax

The Scotland Act 2016 provided the Scottish Parliament with the power to set the rates and bands applying to all non-savings non-dividend (NSND) income tax paid by Scottish taxpayers from April 2017. 

NSND income is primarily from employment and pensions, and excludes income from savings and dividends.

The Scottish Parliament can:

• Vary tax rates
• Change the thresholds between tax bands
• Change the total number of bands

The personal allowance, the amount of income after which you start paying income tax, remains reserved to the UK Government. Income tax continues to be administered by HMRC.

You can find out more about Scottish income tax, and how we forecast it, in the pages below.