Income Tax Act 2007 section 6A

The Scottish basic, higher and additional rates

Section 6A establishes how the Scottish basic, higher and additional rates of income tax are calculated, by adjusting the standard UK rates using a Scottish rate set by the Scottish Parliament.

• The UK basic, higher and additional rates are each reduced by 10 percentage points to create a set of reduced rates for Scotland.
• The Scottish Parliament sets a single Scottish rate, which is then added back across all three reduced rates to produce the Scottish basic, higher and additional rates.
• If the Scottish rate is set at 10%, Scottish taxpayers pay the same as the rest of the UK; below 10% they pay less, and above 10% they pay more.
• The process for setting the Scottish rate is governed by Chapter 2 of Part 4A of the Scotland Act 1998.