Scotland Lifts Income Tax Rates in Further Shift From Rest of UK

The Scottish government will use its power to raise income tax rates to help mitigate a budget squeeze as the economy deteriorates, a further deviation from what people pay in the rest of the UK.

The wealthier will pay one percentage point more from the next fiscal year, lifting the higher rate to 42% from 41% for those with an income above £43,663 ($53,468) and 47% from 46% for people earning £125,140, Deputy First Minister John Swinney said. The rates were already higher than elsewhere, while the threshold for hitting the top rate is coming down in line with the UK.