21 Dec 2023
At the 2023 Scottish Budget on 19 December, the Scottish government introduced a new 45% income tax band for those earning between £75,000 and £125,140.
Additionally, the top rate of tax will also increase from 47% to 48%. The current threshold of £43,663 for paying the higher band will be frozen and will not rise by inflation.
According to the Scottish government, the changes mean that 114,000 people will pay the new tax rate and an additional 40,000 will pay the top rate of income tax.
Commenting on the Scottish Budget, Tracy Black, Director of the Confederation of British Industry (CBI) in Scotland, said: 'The decision to introduce an advanced rate of tax will harm Scotland's ability to attract highly skilled employees and our competitiveness nationally and internationally.
'More action is also needed to develop a skilled workforce with well-funded training and apprenticeships to plug the recruitment crisis, amid a falling working age population.
'The absence of a sustained focus in the Budget on boosting productivity, particularly in the public sector, will stunt the potential of Scotland's prosperity.'