Scottish Budget income tax decision widens pension tax relief gap

In its Budget yesterday (12 December), the Scottish Government announced its six income tax band thresholds would not change at the start of the next tax year. This differs from the rest of the UK where the Treasury, in its Budget in October, confirmed all four would increase. The consequence is that a Scottish taxpayer earning between £43,430 and £49,999 will be entitled to 41% tax relief, while an equally-paid English taxpayer receives just 20%, as the equivalent threshold is due to rise from £46,351 to £50,000. Tax band thresholds have been devolved to the Scottish Government since...