Scottish 24/25 Budget- Tax Rates Soar for Higher Scottish Earners

Carol Edwards, author of blog about furnished holiday let changes

Finance secretary Shona Robinson delivered Scotland’s 2024/25 budget confirming tax rises for those with income in excess of £75,000.  Scottish tax rates apply to employment, pension and property income but do not apply to investment income such as interest and dividends.

The changes are designed to help plug a 1.5bn funding shortfall alongside a series of spending cuts and are estimated to raise an additional £80m in tax.

Scotland already had the highest tax rate in the UK at 47% for those with income in excess of £125,140, but today she revealed that rate of Income Tax in Scotland will be increased by 1% to 48% from 6 April 2024. This compares to UK wide rate of 45% at this level, a difference of 3% more for those living in Scotland.

Additionally, a new 45% tax band, known as the ‘advanced rate’ will be introduced from 6 April 2024 for people earning between £75,000 and £125,140, meaning they will pay 3% more tax than they currently do (effectively 5% more than rest of UK).  This means someone already in Scotland earning £100,000 will see their Income Tax liability rise by £750, but they will also be paying over £3,300 more in tax, compared to someone living in the rest of the UK.

For 2024-25 the Starter and Basic rate bands will be increased by inflation to £14,876 and £26,561 respectively however the current thresholds for the higher and top bands will be frozen at £43,663 and £125,140 respectively and will not rise with inflation.

These measures will see Scotland have six progressive income tax bands in comparison to three across the rest of the UK.

The Scottish tax rates applicable from 6 April 2024:

  Scottish Tax Bands Scottish Tax Rate UK Tax Bands UK Tax Rate
Personal Allowance £12,570 0% £12,570 0%
Starter Rate £12,571 – £14,876 19%
Basic Rate £14,877 – £26,561 20% £12,571 – £50,270 20%
Intermediate Rate £26,562 – £43,662 21%
Higher Rate £43,663 – £75,000 42% 50,271 – 125,140 40%
Advanced Rate £75,001 – 125,140 45%
Top Rate Over £124,140 48% Over £125,140 45%


The changes announced have significantly increased the gap between Income Taxes paid by Scottish taxpayers compared with those in the rest of the UK.

If you would like any more information on how the changes to Scottish tax rates for the 2024/25 tax year will impact you please contact Carol Edwards, or a member of our Private Client Team.

How AAB can help

Private Clients & High Net Worth Individuals

Our team support a diverse array of individuals such as employed professionals, business owners, families and international sports stars. As AAB clients, they all benefit from absolute confidentiality and share a unified goal of optimising and safeguarding their personal wealth. Our services extend far beyond mere tax return completion. In addition to standard personal tax compliance, our dedicated team of personal tax specialists delivers dependable and practical tax advice, ensuring full compliance and optimal positioning.

View our private client services

Related services

Sign up for the latest industry insights

  1. Blog16th Jul 2024

    Will Labour introduce A 4 Year Tax Residence Amnesty AAB image

    Will a 4 year tax residence amnesty attract Overseas Investors to help Labour’s plans for Economic Growth?

    Labour may look to introduce a 4 year tax residence amnesty to attract overseas investors to help them with their plans for economic growth. So, what does that mean? Foreign Investors – Who, what and where One of the recognised…

    By Lynn Gracie and Carol Edwards

    View more
  2. Blog3rd Apr 2024

    Carol Edwards, author of blog about furnished holiday let changes

    Navigate the End of the ‘Furnished Holiday Let’

    The number of Furnished Holiday Lets (FHLs) in the UK has increased in recent years, driven by the ever-growing popularity of UK ‘staycations’.  However, Jeremy Hunt announced in the 2024 Spring Budget that the Furnished Holiday Letting regime will be…

    By Carol Edwards

    View more
  3. Blog11th Dec 2023

    Carol Edwards, author of blog about furnished holiday let changes

    Self-Assessment Tax Return Deadline is Coming-Tick Tock On The Compliance Clock

    The festive season is on the horizon, and it might be fair to say completing your tax return may not be at top of the priority list, but it’s important to remember the online self-assessment filing deadline of 31 January…

    By Carol Edwards

    View more
  4. Blog28th Sep 2022

    60 Day Capital Gains Tax Reporting – The Rules Recap

    Almost a year on from the extension of the timeframe for reporting disposals of residential property our blog provides a recap of the rules on what exactly needs reporting, who needs to report it, how is it reported, when is…

    By Carol Edwards

    View more