Scottish government rejects real-terms increase in higher-rate tax threshold

Higher earners living in Scotland will pay more income tax than those living elsewhere in the UK, starting in April 2017, if the Scottish Parliament backs a draft budget proposal to limit an increase in the higher rate threshold.

Tax and spending proposals announced on December 15 for the 2017-2018 tax year would improve public services, support the Scottish economy, and “provide the foundations for future sustainable growth and prosperity,” said Derek Mackay, Scotland’s cabinet secretary for finance and the constitution …

A lower threshold in Scotland would increase complexity for some employers and employees, particularly commuters and others who have more than one home …

Read more: My news story for Tax Analysts, December 15 (paywall).