22nd March 2018

The Pension Regulator: Scottish rate of income tax update

The new Scottish Income Tax rates and bands for the 2018 to 2019 tax year were confirmed on 20 February 2018 and will apply from 6 April 2018. 

HMRC have confirmed that pension schemes using the Relief At Source mechanism will continue to claim tax relief at 20% for Scottish tax payers, so there is no change. Those using Net Pay Arrangement will have their pension contributions deducted before income tax is applied to their pay, so only pay tax on what’s left. Pension tax relief on these contributions will continue to be given at members’ marginal rate of tax, including at the new and newly increased Scottish rates.

There is further information available here.

Pensions, Tax, Trust & ISA