Scotland
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Published on: 2023-05-01 16:17:49
Last modified: 2023-05-01 17:25:05
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Reference(s) HMRC
Tax tables last updated: 2023-05-01 17:18:11 [Update Rates]
Currency British Pound Sterling [ GBP ] [ £ ]
Introduction
Below are specific calculators for the calculation of Personal Income Tax (PIT) and Corporation Income Tax (CIT) in Scotland. These tax calculators are for resident and non-resident tax filing status in Scotland. The Scotland tax calculators are updated with the rates and thresholds up to and including the 2023 tax year, specific tax rates and thresholds can be reviewed in the Scotland tax tables.
Scotland PIT calculators
The following tax calculators, tools and examples are for the calculation and illustration of taxes associated with personal income and expenditure.
Scotland CIT calculators
The following tax calculators, tools and examples are for the calculation and illustration of taxes associated with corporate income and expenditure.
Tax in Scotland - A Comprehensive Guide
If you are living in Scotland or planning to move there, it is essential to have a good understanding of the country's tax system. The United Kingdom (UK) has a complex tax system that includes several types of taxes, such as income tax, value-added tax (VAT), and capital gains tax. These taxes are collected by Her Majesty's Revenue and Customs (HMRC), the government agency responsible for tax collection.
Income Tax in Scotland
Income tax is the most significant tax that people pay in Scotland. It is a progressive tax, meaning that the more you earn, the higher percentage of tax you will pay. The first £ 12,570.00 of your income is tax free (this is the standard personal exemption and is defined by a personal tax code for each individual taxpayer). Once an individuals personal allowance is exceeded, income tax is applied using specific tax rates and thresholds, the income tax rates for the 2023 tax year are as follows:
| Tax Rate | Taxable Income Threshold | ||
|---|---|---|---|
| 19% | £ 0.000.00 | to | £ 2,162.00 |
| 20% | £ 2,162.01 | to | £ 13,118.00 |
| 21% | £ 13,118.01 | to | £ 31,092.00 |
| 42% | £ 31,092.01 | to | £ 112,570.00 |
| 47% | £ 112,570.01 | and above | |
Value-Added Tax (VAT) in Scotland
VAT is a tax that is added to the price of most goods and services in Scotland. The standard VAT rate in the UK is currently 20%. However, some goods and services are exempt from VAT or charged at a reduced rate (see the tax tables for the latest tax rates).
Capital Gains Tax in Scotland
Capital gains tax is a tax on the profit you make when you sell an asset that has increased in value. The amount of tax you pay depends on the asset's value and how long you have owned it. There are different tax rates for individuals and companies, and you can offset losses against your gains to reduce your tax bill.
Tax Calculators for Scotland
At Tax Calculator, we have a range of tax calculators that can help you plan and manage your taxes in Scotland. Our income tax calculator can help you work out how much income tax you will need to pay, while our capital gains tax calculator can help you estimate your capital gains tax liability.
Conclusion
Understanding the tax system in Scotland and the United Kingdom is crucial for anyone living or working in the country. By using our tax calculators and staying up-to-date with the latest tax laws and regulations, you can manage your taxes effectively and ensure that you are paying the right amount of tax.