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Scottish Rate of Income Tax

What Scottish taxpayers will pay

From 6 April 2016, you’ll pay the Scottish rate of Income Tax if you are a resident in Scotland. This means some of your income tax will be paid to the Scottish Government. Scottish tax payers will pay a UK income tax rate reduced by 10% plus the Scottish rate of Income Tax of 10%. This means that you’ll pay the same overall rate of income tax as people in the rest of the UK.

The Scottish rate of Income Tax applies to your wages and pension, but not to income from your savings interest or dividends. The rate on savings interest and dividends will stay the same for all taxpayers across the UK.

HM Revenue and Customs (HMRC) will already have written to you if they think you should pay the Scottish rate of Income Tax. From 6 April 2016 your PAYE tax code will start with an `S` if you’re employed or receive a pension. This will make sure your employer or pension provider deducts income tax at the correct rate.

If you receive a pension from NFU Mutual, HM Revenue and Customs (HMRC) will tell us what tax code to apply to your pension payments.  We will write to you confirming your tax code and amount of tax we will deduct from your pension payments.

The exact tax treatment will depend on the individual circumstances of each client and may change in the future.

Talk to the experts

Our Financial Advisers* can offer expert, personalised advice to help make saving for your retirement as easy and practical as possible.


*Please note:

When you contact us we'll explain the advice services we offer and our charges. NFU Mutual Financial Advisers advise on NFU Mutual products and selected products from specialist providers.

For security and training purposes, calls may be recorded and monitored.