What is the Personal Allowance in Scotland for 2023/2024?

The 2023/2024 Personal Allowance for Scotland is £12,570 which is in line with other parts of the UK.

2023/2024 Scottish Income Tax Rates

Income tax rates are different in Scotland in comparison to other countries in the UK.

For the 2022-23 tax year, the Scottish Income Tax rates are:

• 19% Starter Rate on income between £12,571 and £14,732.
• 20% Scottish Basic Rate on income between £14,733 and £25,688.
• 21% Intermediate Rate on income between £25,689 and £43,662.
• 41% Higher Rate on income between £43,663 and £150,000.
• 46% Top Rate on income over £150,000.

The Scottish personal allowance is free from tax with only income after the personal allowance threshold being taxable.

The rate of tax you pay after the personal allowance changes in accordance with the level of your income.

Scottish Personal Allowance for income over £100,000

When your income goes over £100,000, your tax free Personal Allowance reduces at a rate of £1 for every £2 your earnings are over £100,000.

This means that by the time you earn £125,140 your Personal Allowance amount is reduced to zero.

Scottish rates of tax and your tax code

If you are a Scottish tax payer you will normally have a tax code which reflects the fact that you pay tax in Scotland.

The letter S is used at the start of your tax code to signify your Scottish tax status for example the tax code S1257L.

S1257L tax code

The S1257L tax code is the made of the letter S to indicate that you are a taxpayer in Scotland with the numbers 1257 reflecting the tax free personal allowance of £12570. The letter L confirms that you are entitled to the standard personal allowance.

If you like to find out more about your tax code and what to do if you believe it needs checked you can use our free tax code guide.