8 9
Basic Rate £12,501 - £50,000 20%
Higher Rate £50,001 - £150,000 40%
Additional Rate Over £150,000 45%
Income Tax Income tax is a tax on income. However not all income is taxable and some people will qualify for the Scottish Personal Allowance, which allows them to earn some income tax free. To find out if you are eligible for the Scottish Personal Allowance we recommend that you speak with a tax advisor.
As a non-UK resident you will be liable to pay income tax on rental income derived in the UK.
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The above table assumes the individual is receiving the Personal Allowance for tax-free income of £12,500 in the tax year. The Personal Allowance is reduced by £1 for every £2 earned over £100,000. This is the same as the rest of the UK.
Capital Gains Tax Capital Gains Tax (CGT) is a levy on the profit made on an asset, payable upon disposal of that asset.
From April 2015, non-residents have been taxed at the same rate as domestic investors. The tax applies to all individuals and companies (except those falling under the ATED structure), and will only be levied on gains made after April 2015.
The rate for individuals will be 18% or 28% depending on the person s total UK income and chargeable gains for the year. As with domestic investors in the tax year 2020/21, there is a £12,300 tax-free allowance for individual investors from overseas.
In Scotland, capital gains tax is calculated on the UK thresholds rather than on the Scottish bands of income tax. That raises the possibility that you could be a higher-rate Scottish taxpayer, but still pay the basic rate on capital gains.
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2020/2021 tax rates on income earned in Scotland
Personal Allowance Up to £12,500 0%
Starter rate £12,501 to £14,585 19%
Basic rate £14,586 to £25,158 20%
Intermediate rate £25,159 to £43,430 21%
Higher rate £43,431 to £150,000 41%
Top rate over £150,000 46%
2020/2021 income tax rates