What is the Scottish Rate of Income Tax (SRIT)?


Alexandra Docherty

Alexandra Docherty

Tax Partner


From Wednesday 6 April 2016, if you live in Scotland you may now pay the Scottish rate of Income Tax (‘SRIT’).

This means some of your Income Tax will be paid to the Scottish Government and applies to your wages, pension and rental income. It does not matter in which part of the UK the income arises.

Who does it apply to?

SRIT will only apply to Scottish Taxpayers. You are a Scottish Taxpayer if: 

  1. You are a Scottish Parliamentarian (e.g. MSP, Scottish MEP or Scottish MP)
  2. You have a close connection to Scotland which includes:
    • Only one main residence which is in Scotland
    • More than one main residence in the UK (one of which is in Scotland) and your main residence is in Scotland for at least as much time as elsewhere in the UK
  3. There is no close connection (2 above) but on day counting you spend at least as much time in Scotland as elsewhere in the UK.

How much is it?

The Scottish rate of Income Tax has been set at 10% for the tax year commencing on 6 April 2016, which means you’ll pay the same overall rate of Income Tax as people in the rest of the UK, whether you pay the basic, higher or additional rates.

If you are employed or get a pension, and are a Scottish taxpayer, from 6 April 2016 your tax code will start with an ‘S’. This will tell your employer or pension provider to deduct tax at the Scottish rate. Most people’s tax code will be S1100L if they pay the Scottish rate and get the standard Personal Allowance.

What does it not apply to?

Your Personal Allowance – the amount of income you don’t pay tax on – stays the same. Please note, you don’t get a Personal Allowance if you pay the additional tax rate. SRIT will not apply to dividend income and other savings income such as bank interest. Currently corporation tax is outside of the new tax raising powers for Scotland.

Do I need to do anything?

You should have received a letter from HM Revenue and Customs (HMRC) if they think you should pay the Scottish rate of Income Tax. If you have not received one and your main home is in Scotland then you must update your address with HMRC

What else do I need to know?

Multiple Residencies: those who have residences in other parts of the UK will need to consider where their main residence is in order to determine if they are a Scottish Taxpayer.

Please note there is no split year basis for SRIT purposes; if you are a Scottish Taxpayer for part of the year you will be so for the whole tax year. This may impact individuals moving between different parts of the UK. HMRC technical guidance includes various examples which explain the way in which the rules operate. Please click here to view.

Going forward, from 6 April 2017, tax bands and rates for Scottish taxpayers may diverge from the rest of the UK. The 2016 Scottish Budget will confirm the position later this calendar year.

Got a question? 

Should you wish to meet to discuss how these changes may affect you going forward, need assistance in reviewing your residency position or have any doubts regarding your status, we’re here to help. Get in touch with me Alex Docherty on alex.docherty@jcca.co.uk or by phone on 0131 220 2205.