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Rush of high-earning Scots set to head south as income tax skyrockets | UK | News UK News

The new tax threshold for high earners in Scotland, which sees those earning more than £75,000 paying a rate of 45 percent, could have implications on living choices.

Taking to X, formerly known as Twitter, user @chamaerion, said the new tax band would “unleash a rush of wealthy Scottish people to England”.

TV presenter and journalist, Andrew Neil commented: “Except that a large percentage of those earning over £75,000 in Scotland work for the public sector. Or depend on public sector fees (eg lawyers, architects, accountants etc). They won’t find it so easy to relocate South. But investing in Berwick property (an hour’s commute from Edinburgh) looks a good bet.”

The comment made by the 70-year-old presenter sparked an online debate.

User, @AngasAnnal66, responded: “These high personal taxes will cause Scotland to struggle to attract high earners and entrepreneurs from abroad or from other parts of England. Why start a business in Scotland when you can keep more of your own money in England?”

X user, @spenderman, also shared his thoughts: “Professional people like Doctors probably won’t move, but will reduce their working hours, put more money into pensions then retire earlier, starving Scotland of their skills and expertise.”

Andrew Neil previously posted: “…There are so few high earners in Scotland it might bring in only an extra £60m or so, esp as taxpayers change behaviour/pension planning to avoid 47 percent.”

The decision was announced by Deputy First Minister and Finance Secretary, Shona Robison, as she unveiled the Scottish budget in a statement at Holyrood.

Scotland already had the highest tax band in the UK at 47 percent for people earning more than £125,000. This will also rise by 1 percent next year to 48 percent.

The new rate takes the number of income tax bands in Scotland to six, while the rest of the UK has three.

The Fraser of Allander Institute (FAI) previously said the new band would only raise around £60m for spending.

Meanwhile, the Scottish Fiscal Commission estimates that overall income tax will raise £18.8bn in 2024-2025.

The changes were designed to help plug a £1.5bn black hole in the country’s finances.

 Starter (19%): £12,571 – £14,876
 Basic (20%): £14,877 – £26,561
• Intermediate (21%): £26,562 – £43,662
 Higher (42%): £43,663 – £75,000
 Advanced (45%): £75,001 – £125,140
 Top (48%): > £125,140

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This notice was published: 2023-12-19 21:53:00

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