Tax on Savings Interest and Dividend Income in Scotland

I live in Scotland but am struggling with the interaction between Scottish Income Tax Rates on earned income and tax on Savings Interest and Dividend Income. Can you confirm that my thinking using the example below (using 2023/2024 tax rates, bands and allowances) is correct. Pension Income £43,662 (maximum amount before classed as Higher Rate Tax payer in Scotland) Savings Interest £3,608 Dividend Income £3,000 So Total Income £50,270 (maximum amount before classed as Higher Rate Tax payer in UK) Tax on Pension Income (payable at Scottish Tax Rates) £12,570 at 0% + £2,162 at 19% + £10,956 at 20% + £17,974 at 21% (so £43,662 taxed at less than Higher Rate Scotland) Tax on Savings Interest £1,000 at 0% + £2,608 at 20% (so Basic Rate allowance of £1,000 and taxed at UK Basic Rate) Tax on Dividend Income £1,000 at 0% + £2,000 at 8.75% (so taxed at UK Basic Rate)

Hi,

You can see guidance here:

Income Tax in Scotland

Thank you.

Thank you for your reply. I was already aware of that guidance which unfortunately does not provide the level of detail I need. Are you able to confirm that the calculations in my example are correct which would provide me with the detail I need on the interaction of Scottish and UK tax bands for a Scottish taxpayer.

Hi,

Your example is correct.

Thank you.

Thank you for that confirmation. That is extremely helpful. Can I ask one further question. My spouse is a non-taxpayer. Assuming I have income as described in my example, are we able to use the Marriage Allowance. My understanding is that (in my example), as I am not a Scottish or UK higher rate taxpayer then my spouse can pass me the Marriage Allowance. Is this correct?

Hi TunnocksTeaCake,
Even if you are Scottish you can still apply - Marriage Allowance
Thank you