Scottish government to freeze income tax

The Scottish government has confirmed that it will not follow the UK government in raising the income tax higher rate threshold next year by more than inflation. From April 2017 the threshold in Scotland will increase in line with the CPI and by no more than inflation until 2021/22. The additional rate will remain at 45% in 2017/18.

By maintaining these thresholds the Scottish government says it expects to generate cumulative additional revenue of more than £1bn by 2021/22.