Income Tax – regional differences

You will pay Scottish Income Tax if you live in Scotland, Income Tax if you live in England or Northern Ireland and the Welsh Income Tax if you live in Wales.

At present, the only regional variations under the control of the Scottish or Welsh governments are the rates of Income Tax charged.

For 2019-20, the rates set by the Welsh Government are the same as those in England and Northern Ireland. Scottish Income Tax rates have more bands and the higher and top rate are 1% higher than the rest of the UK.

These differences do open up planning opportunities if you live and work in the border areas between England and Scotland.

As you pay tax at Scottish or other UK rates based on where you live, you could choose to live in England and work in Scotland if you pay tax at the higher rates. Obviously, there are many other factors that you will want to consider when choosing where you set up home, but if the regional Income Tax rate differentials start to widen, the ability to reduce your Income Tax burden may become more of a deciding issue.

Latest Blog
07
May

Winter Fuel Payment scams – Beware

Pensioners are being urged to stay vigilant for any Winter Fuel Payment scams. HMRC i...

Read More
07
May

Chancellor seeks support from retail banks to drive growth

The recent announcement from Rachel Reeves highlights a clear shift in the government...

Read More
06
May

How bonuses are taxed

Bonuses are treated as taxable earnings, so both employers and employees need to unde...

Read More
06
May

Tax relief when incorporating a business

When a sole trader or partnership transfers a business to a company, a chargeable gai...

Read More