The Scotland Act 2012 gave the Scottish Parliament the power to set the Scottish Rate of Income Tax. The Scottish rate of income tax (SRIT) comes into effect from April 2016.  While the Scottish Parliament will have the power to set the Scottish Rate of Income tax, HMRC will continue to be responsible for its collection and management. 

what will happen


HMRC plan on sending letters to all Scottish tax payers as part of its preparations for the new tax.  The letters are intended to confirm the accuracy of the data held by HMRC, regarding who lives in Scotland and who will be eligible to pay the new rate from April 2016.



what you have to do

You need take no action if the address details HMRC holds for you are correct. 

However if there is a change you must contact HMRC directly, this will ensure you are allocated the correct tax code.



Those eligible for the new tax will see their tax codes prefixed with 'S' and their income tax will continue to be collected from pay and pensions in the same way as it is now.

For further information please see

Setting the Scottish Rate

The Scottish Government will propose a Scottish Rate for the first time for tax year 2016/17 as part of the budget setting process.  On the 10 November the Deputy First Minister invited the Finance Committee to agree that the Draft Budget will be published on the 16 December.

For further information please see

Link to Scottish Government Website