Income Tax Act 2007 section 11A

Income charged at Scottish rates

Section 11A requires that the non-savings income of a Scottish taxpayer is charged to income tax at Scottish rates rather than the standard UK rates.

• Income tax on the non-savings income of a Scottish taxpayer is charged at Scottish rates set by the Scottish Parliament.
• Non-savings income means any income that is not savings income — so employment income, trading profits, pension income and property income are all within scope.
• Savings income and dividend income are excluded — savings income continues to be taxed at UK-wide rates, and dividend income follows its own separate rate structure.
• The Scottish rates do not override other specific charging provisions in the Income Tax Acts, such as the dividend ordinary, upper and additional rates.